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Jan. 25, 2021, 8:41 a.m. EST

UPS to sell freight business to TFI for $800 million as part of 'better not bigger' plan

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By Tomi Kilgore

Shares of United Parcel Service Inc. /zigman2/quotes/201245396/composite UPS -0.46% announced Monday an agreement to sell its UPS Freight (UPSF) business for $800 million to Canada-based trucking company TFI International Inc. /zigman2/quotes/204670630/composite TFII -0.29% /zigman2/quotes/202043458/delayed CA:TFII -0.70% . UPS expects to record a $500 million impairment charge on its 2020 results as a result of the deal, which is expected to close during the second quarter of 2021. The package delivery giant said it decided to sell UPSF after a "thorough evaluation" of its portfolio, as part of its "better not bigger" strategic positioning plan. "The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers," said UPS Chief Executive Carol Tomé. UPS stock, which rose 1.9% in premarket trading, has dropped 7.5% over the past three months through Friday, while TFI's U.S.-listed shares have gained 2.0%, the Dow Jones Transportation Average /zigman2/quotes/210598063/realtime DJT +1.70% has tacked on 8.2% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.35% has advanced 9.4%.

/zigman2/quotes/201245396/composite
US : U.S.: NYSE
$ 160.07
-0.74 -0.46%
Volume: 2.96M
Feb. 24, 2021 4:04p
P/E Ratio
97.43
Dividend Yield
2.55%
Market Cap
$139.34 billion
Rev. per Employee
$155,492
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/zigman2/quotes/204670630/composite
US : U.S.: NYSE
$ 72.61
-0.21 -0.29%
Volume: 203,215
Feb. 24, 2021 4:00p
P/E Ratio
23.99
Dividend Yield
1.25%
Market Cap
$6.78 billion
Rev. per Employee
$225,699
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/zigman2/quotes/202043458/delayed
CA : Canada: Toronto
$ 90.86
-0.64 -0.70%
Volume: 406,376
Feb. 24, 2021 5:40p
P/E Ratio
22.47
Dividend Yield
1.28%
Market Cap
$8.55 billion
Rev. per Employee
$302,730
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/zigman2/quotes/210598063/realtime
US : Dow Jones Indices
13,630.55
+227.44 +1.70%
Volume: 167.36M
Feb. 24, 2021 5:20p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
31,961.86
+424.51 +1.35%
Volume: 413.35M
Feb. 24, 2021 5:20p
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