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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 -0.61% 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 -3.37% /zigman2/quotes/202043458/delayed CA:TFII -3.33% . 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 -2.43% has tacked on 8.2% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -1.11% has advanced 9.4%.

/zigman2/quotes/201245396/composite
US : U.S.: NYSE
$ 159.45
-0.98 -0.61%
Volume: 3.71M
March 4, 2021 4:04p
P/E Ratio
97.05
Dividend Yield
2.56%
Market Cap
$139.10 billion
Rev. per Employee
$155,492
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/zigman2/quotes/204670630/composite
US : U.S.: NYSE
$ 70.61
-2.46 -3.37%
Volume: 218,966
March 4, 2021 4:00p
P/E Ratio
23.33
Dividend Yield
1.29%
Market Cap
$6.84 billion
Rev. per Employee
$225,699
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/zigman2/quotes/202043458/delayed
CA : Canada: Toronto
$ 89.32
-3.08 -3.33%
Volume: 433,488
March 4, 2021 5:40p
P/E Ratio
22.09
Dividend Yield
1.30%
Market Cap
$8.63 billion
Rev. per Employee
$302,730
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/zigman2/quotes/210598063/realtime
US : Dow Jones Indices
13,219.66
-328.78 -2.43%
Volume: 145.62M
March 4, 2021 5:08p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
30,924.14
-345.95 -1.11%
Volume: 551.23M
March 4, 2021 5:08p
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