UPS Freight Acquired in $800 MILLION Blockbuster Deal

Montreal, Quebec – TFI International Inc. has agreed to a blockbuster deal worth $800 million to acquire UPS Freight.

In an announcement on Monday, the Canadian mega carrier said it has signed a definitive agreement to buy the less-than-truckload (LTL) and dedicated truckload (TL) divisions of United Parcel Service, Inc. on a cash-free, debt-free basis before working capital and other adjustments.


Approximately 90% of the acquired business will operate independently within TFI International’s LTL business segment under its new name, “TForce Freight,” while acquired dedicated TL assets will join TFI’s TL business segment.

“We are pleased to announce this highly strategic transaction that will strengthen our service offerings to customers as well as our ongoing relationship with UPS,” said Alain Bédard, Chairman, President and Chief Executive Officer of TFI International. “Our strategy of operating independent business units with a high degree of accountability is well-suited for building on UPS Freight’s strengths and improving margins over time. TForce Freight will continue to serve UPS’ ongoing LTL distribution needs, and UPS will continue to provide freight volumes and other services to TForce Freight after the transaction for a base term of five years.”

Bédard also indicated TFI would soon be offering “expanded strategic network opportunities” to UPS in Canada.


“This transaction is a ‘win-win’, allowing TFI to continue our strategic expansion across the US and aligning with UPS’ ‘Better not Bigger’ strategic positioning,” he commented.

The assets acquired in the deal include a network of 197 facilities (147 of which are owned).

UPS Freight generated approximately $3 billion in revenue in 2020 and was approximately breakeven from an operating income perspective.


The transaction is expected to be accretive to diluted earnings per share in 2021.

TFI said it expects to realize significant near- and long-term opportunities to improve TForce Freight’s operating margin through separate management of LTL and dedicated TL businesses.

Photo courtesy of UPS Freight



Three Mega Fleets Buy Ownership in Driverless Tech Company to “Accelerate Adoption”

Teamsters Blast President Biden’s Decision to Cancel Keystone XL Pipeline

PACCAR to Soon Deliver “Truly Driverless” Peterbilt 579s and Kenworth T680s

USDOT Secretary Nominee Lays out “New Climate Vision,” Backtracks on Fuel Tax



If you enjoyed this article, please help us grow by sharing it. Thank you!


Pin It on Pinterest

Share This