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  • UPSF sold to TFI

    I got this in an email this morning .. All I can say is WOW.. Just when the UPSF teamsters thought they had it good then boom.. I do hope it works out well for them ..

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

    MARKET PULSE
    Shares of United Parcel Service Inc. announced Monday an agreement to sell its UPS Freight (UPSF) business for $800 million to Canada-based trucking company TFI International Inc. 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 has tacked on 8.2% and the Dow Jones Industrial Average has advanced 9.4%.

  • #2
    Re: UPSF sold to TFI

    Originally posted by crazy View Post
    I got this in an email this morning .. All I can say is WOW.. Just when the UPSF teamsters thought they had it good then boom.. I do hope it works out well for them ..

    UPS to sell freight business to TFI for $800 million as part of 'better not bigger' plan
    https://www.msn.com/en-us/money/comp...an/ar-BB1d4JlA

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    • #3
      Re: UPSF sold to TFI

      I don't know anything about trucking company values but $800 million doesn't sound like a lot for UPSF

      Comment


      • #4
        Re: UPSF sold to TFI

        Originally posted by 2631 View Post
        I don't know anything about trucking company values but $800 million doesn't sound like a lot for UPSF
        If I remember right they paid about 1.25 billion for overnight..Don't go by what Zollars spent .. He was like a young boy with someone else's credit card..
        Last edited by crazy; 01-25-2021, 12:28 PM.

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        • #5
          Re: UPSF sold to TFI

          Wow, that really seems like a bargain for a Nationwide LTL carrier. Didn't see that coming!

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          • #6
            Re: UPSF sold to TFI

            "In a call with stock analysts, TFI’s CEO Alain Bedard stated they plan to upgrade equipment and run a more efficient operation.

            Today the IBT Package Division issued a memoto reassure UPS Freight Teamsters that the sale of the company to TFI (branded as TForce Freight) will have no impact on the contract, wages, benefits or pending grievances."




            https://www.tdu.org/ups_freight_sold...orporation_tfi

            Sent from my SM-J327T using Tapatalk
            Last edited by 222lifer; 01-25-2021, 01:30 PM.

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            • #7
              Re: UPSF sold to TFI

              Originally posted by crazy View Post
              If I remember right they paid about 1.25 billion for overnight..Don't go by what Zollars spent .. He was like a young boy with someone else's credit card..
              I can't find a link but I thought Zollars had overpaid by at least $100 million for USF. Supposedly the USF stockholders made a killing on the sale.

              Comment


              • #8
                Re: UPSF sold to TFI

                UPS Freight sold to Canada’s TFI for $800 million

                The $800 million sale comes with a five-year service agreement that will ensure UPS Freight will continue to use UPS’s network to fulfill package shipments, UPS said in a statement Monday. That will avoid disruption for shippers that use bundled UPS package and freight services.

                TFI owns nine over-the-road LTL carriers in Canada, including TST-CF Express, the combined operations of the former TST Overland Express and Canadian Freightways. In 2019, the company’s Canadian LTL operations took in a collective C$902 million (US $707.67 million) in revenue.

                The sale includes the LTL operation, which reported $3.1 billion in revenue in 2020, as well as UPS’s dedicated truckload business, UPS said. Compared with large truckload carriers, UPS Freight is a relatively small player; its dedicated operations will be split off and operate within TFI's truckload division, which was the 15th largest truckload company by revenue in 2019.

                In total, UPS Freight operates from 197 facilities across the US, and has 14,500 employees, about 11,500 of which are members of the Teamsters union.

                With UPS Freight out of its hands, the largest US transportation company will be free to “laser focus” on core parts of its business — i.e., those that deliver the most value to its customers — UPS CEO Carol Tomé said in a separate statement Monday. That means the package network.

                https://www.joc.com/trucking-logisti..._20210125.html

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                • #9
                  Re: UPSF sold to TFI

                  Originally posted by 2631 View Post
                  I can't find a link but I thought Zollars had overpaid by at least $100 million for USF. Supposedly the USF stockholders made a killing on the sale.
                  Think you are correct..

                  http://investors.yrcw.com/news-relea...f-corporation/

                  February 27, 2005 at 12:00 AM EST
                  Yellow Roadway Corporation to Acquire USF Corporation
                  Yellow Roadway Corporation to Acquire USF Corporation
                  Provides immediate and nationwide scale in next day and regional markets
                  Significant synergies and operational efficiencies expected
                  Cash and stock transaction expected to be accretive within twelve months
                  OVERLAND PARK, Kan. & CHICAGO, Ill.--(BUSINESS WIRE)--Feb. 27, 2005--Yellow Roadway Corporation (NASDAQ:YELL) and USF Corporation (NASDAQ:USFC) today announced that they have entered into a definitive agreement pursuant to which Yellow Roadway will acquire USF. Highlights of the agreement, which has been unanimously approved by the boards of directors of both companies, include:

                  A transaction value of approximately $1.37 billion (based on the Yellow Roadway trailing 90-day closing stock price as of February 18, 2005). Yellow Roadway will also assume an expected $99 million in net USF debt, resulting in a total enterprise value of approximately $1.47 billion.
                  The right of USF shareholders to elect for each share either $45.00 in cash or 0.9024 shares (a fixed exchange ratio) of Yellow Roadway common stock. All shareholder elections will then be adjusted such that the gross cash consideration will total approximately $639 million (based on the USF shares currently outstanding) and the balance will be paid in stock.
                  A tax-free transaction to USF shareholders to the extent such shareholders receive shares of Yellow Roadway stock.
                  The transaction is subject to the approval of shareholders of both companies. In addition, the acquisition is subject to the expiration or termination of the waiting period pursuant to the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, and other customary closing conditions.
                  And then when they bought roadway

                  http://investors.yrcw.com/news-relea...n-966-million/

                  July 8, 2003 at 12:00 AM EDT
                  Yellow Corporation to Acquire Roadway Corporation for $966 Million
                  Yellow Corporation to Acquire Roadway Corporation for $966 Million
                  Yellow Corporation to Acquire Roadway Corporation for $966 Million
                  Yellow Corporation to Acquire Roadway Corporation for $966 Million
                  OVERLAND PARK, Kan. and AKRON, Ohio, Jul 8, 2003 /PRNewswire-FirstCall via COMTEX/ -- Yellow Corporation (Nasdaq: YELL) and Roadway Corporation (Nasdaq: ROAD), two of the most widely recognized brand names in the transportation industry, today announced they have entered into a definitive agreement under which Yellow Corporation will acquire Roadway Corporation for approximately $966 million, or $48 per share (based on a fixed exchange ratio and a 60-day average price per share of $24.95 for Yellow common stock in a half cash, half stock transaction). This represents a 49 percent premium for Roadway shares based on the 60-day average closing price of Roadway stock. Yellow Corporation will also assume an expected $140 million in net Roadway indebtedness, bringing the enterprise value of the acquisition to approximately $1.1 billion.

                  The combined enterprise, which will be known as Yellow-Roadway Corporation, will be one of the largest transportation service providers in the world, with the ability to move shipments domestically and internationally. Yellow-Roadway will be the largest U.S.-based transportation service provider with a focus on big shipments for business-to-business customers. The combined revenue of both companies for the twelve months ending the first quarter of 2003 was nearly $6 billion.

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                  • #10
                    Re: UPSF sold to TFI

                    Originally posted by 2631 View Post
                    I don't know anything about trucking company values but $800 million doesn't sound like a lot for UPSF

                    One of the articles I read today stated that ups was keeping all branded trucks/trailers,..................

                    Comment


                    • #11
                      Re: UPSF sold to TFI

                      Well they said everything was gonna stay the same but here we go..

                      TFI International buys UPS Freight for $800 million, rebranding as “TForce Freight”

                      By John D. Schulz · January 25, 2021
                      UPS is selling its UPS Freight less-than-truckload (LTL) unit to TFI International Inc., a Canadian holding company that is parent to truckload giant CFI and other transport entities, for $800 million, subject to working capital and other adjustments. The company will rebrand as “TForce Freight” under Canadian ownership.

                      The sale of UPS’s LTL and dedicated truckload units shakes up the staid $46 billion LTL sector at a time when most large LTL companies, even including once-troubled Yellow Corp., are making solid profits.

                      Richmond, Va.-based UPS Freight did an estimated $3 billion in business while ranking in the top 10 of LTL carriers last year, according to analysts. The $800 million sale price is believed to be a bargain for a once-profitable LTL company that UPS bought from then-Overnite Transportation for $1.25 billion in 2005.

                      TFI said approximately 90% of the acquired business will operate independently within TFI International’s LTL business segment under its new name, “TForce Freight.” The acquired dedicated TL assets will join TFI’s truckload business segment that includes Joplin, Mo-based CFI. The transaction is subject to usual and customary closing conditions, including regulatory approvals.

                      Alain Bédard, chairman, president and CEO of TFI International, called the acquisition a “highly strategic transaction” that will strengthen its service offerings to customers as well as our ongoing relationship with UPS.

                      “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,” Bedard said.

                      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 for a base term of five years after the transaction, both companies said.

                      “We also look forward to offering expanded strategic network opportunities to UPS in Canada,” Bedard added. “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.”
                      https://www.logisticsmgmt.com/articl...A6kR3RN5boIjLE

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                      • #12
                        Re: UPSF sold to TFI

                        As a employee of UPS Freight, you (TFI) bought a Union company with a pension, guess what the pension is....NON-NEGOTIABLE...there will be a strike if you try and take it away IMO.

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                        • #13
                          Re: UPSF sold to TFI

                          Originally posted by Sayheykid View Post
                          As a employee of UPS Freight, you (TFI) bought a Union company with a pension, guess what the pension is....NON-NEGOTIABLE...there will be a strike if you try and take it away IMO.
                          I was wondering when you were going to comment Kid,it's going to be very interesting to see how this plays out...The CEO statement...''improve TForce Freight's efficiency and productivity''....My question would be...Who in the name of Un-Holy Hell is more efficient and productive then UPS?...A lot of different interpretations with that statement...

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                          • #14
                            Re: UPSF sold to TFI

                            Originally posted by wizard View Post
                            I was wondering when you were going to comment Kid,it's going to be very interesting to see how this plays out...The CEO statement...''improve TForce Freight's efficiency and productivity''....My question would be...Who in the name of Un-Holy Hell is more efficient and productive then UPS?...A lot of different interpretations with that statement...
                            To be honest with you, UPS tried to run us like Parcel..they have no ideal how to run a freight company IMO....and second I think they have been shopping us around for a while...kinda happy someone bought us...(no one buys a Union Company)..IMO, if they didn't find some one soon they would have liquidated us IMO..all are tractors are Brown now..and I think they are going to keep them.IMO..thats why the price is so low.....I plan on retiring in a year...but still want that pension to keep going or it will dry-up..that is why IMO it is a must..and I tell the young guys not to give it up EVER..for me and them.

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                            • #15
                              Re: UPSF sold to TFI

                              Sayheykid, are you in a UPSF single employer pension fund?

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