UPS-TFI International Ink $800 Million Deal for UPS Freight
UPS (NYSE: UPS) has agreed to sell its freight division to TFI International (NYSE: TFII) for $800 million by the second quarter of 2021. While investors in both companies cheered the development, TFI International stock reacted more strongly and was up double-digit percentages at the time of this writing, signaling thumbs up from shareholders of the Canada-based transport and logistics company.
For UPS, it's the first big move ever since CEO Carol Tome revealed her intentions to streamline the company after she took the helm in June 2020.
UPS operates three broad segments: U.S. domestic package, international package, and supply chain and freight. UPS Freight is part of the supple chain and freight segment, which also includes forwarding and logistics. UPS Freight, which offers regional, inter-regional, and less-than-truckload services, generated $3.3 billion in revenue in 2019. It accounted for around 4.4% of UPS's total revenue in the year.
Source Fool.com
