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4 • February 15-28, 2021 Nation<br />
THETRUCKER.COM<br />
UPS puts $800 million price tag on trucking<br />
divisions in sales agreement with TFI International<br />
USPS 972<br />
Volume 34, Number 4<br />
February 15-28, 2021<br />
THE TRUCKER NEWS SERVICES<br />
ATLANTA and MONTREAL — UPS and<br />
TFI International Inc. on Jan. 25 announced<br />
a definitive agreement to sell UPS Freight<br />
(UPSF) to TFI International for $800 million,<br />
subject to working capital and other adjustments.<br />
UPS Freight includes the company’s<br />
less-than-truckload (LTL) and truckload (TL)<br />
divisions. The agreement between UPS and<br />
TFI International allows UPS Freight to use<br />
UPS’ domestic package network to fulfill shipments<br />
for five years.<br />
Approximately 90% of the acquired business<br />
will operate independently within TFI<br />
International’s LTL business segment under its<br />
new name, “TForce Freight,” while acquired<br />
dedicated TL assets will join TFI’s TL business<br />
segment. The transaction is subject to usual<br />
and customary closing conditions, including<br />
regulatory approvals.<br />
“We’re excited about the future and the opportunities<br />
this creates for both UPS and UPS<br />
Freight as part of TFI International Inc. The<br />
agreement allows UPS to be even more laserfocused<br />
on the core parts of our business that<br />
drive the greatest value for our customers,”<br />
said UPS CEO Carol Tomé.<br />
“We are pleased to announce this highly<br />
strategic transaction that will strengthen our<br />
service offerings to customers as well as our<br />
ongoing relationship with UPS. Our strategy<br />
of operating independent business units with<br />
a high degree of accountability is well-suited<br />
for building on UPS Freight’s strengths and<br />
improving margins over time,” said Alain<br />
Bédard, chairman, president and CEO of<br />
iStock Photo<br />
Montreal-based TFI International Inc. has<br />
signed an agreement to buy UPS Freight,<br />
which includes the company’s truckload and<br />
less-than-truckload divisions.<br />
TFI International. “TForce Freight will continue<br />
to serve UPS’ ongoing LTL distribution<br />
needs, and UPS will continue to provide<br />
freight volumes and other services to<br />
TForce Freight after the transaction for a base<br />
term of five years. We also look forward to<br />
offering expanded strategic network opportunities<br />
to UPS in Canada. This transaction<br />
is a ‘win-win’, allowing TFI to continue our<br />
strategic expansion across the US and aligning<br />
with UPS’ ‘Better not Bigger’ strategic<br />
positioning.”<br />
The transaction, which is subject to customary<br />
closing conditions and regulatory approvals,<br />
is expected to close during the second<br />
quarter of 2021. UPS expects to recognize a<br />
noncash, pretax impairment charge of approximately<br />
$500 million on its statement of consolidated<br />
income for the year ended Dec. 31,<br />
2020.<br />
With an operating history of more than 85<br />
years, UPS Freight is one of the largest LTL<br />
carriers in the U.S., offering a full range of regional<br />
and long-haul solutions and an on-time<br />
delivery guarantee for all LTL shipments.<br />
Under the agreement, UPS will retain responsibility<br />
for all pre-closing pension obligations,<br />
taxes, and accident and workers’ compensation<br />
liability claims and costs. TFI intends<br />
to make targeted investments in the LTL fleet in<br />
the first 12 months following the transaction,<br />
lowering maintenance costs, improving both<br />
efficiency and safety, and enhancing customer<br />
service and driver satisfaction, according to a<br />
company statement.<br />
Goldman Sachs & Co. LLC is serving as<br />
financial advisor, and King & Spalding LLP is<br />
serving as legal advisor to UPS.<br />
Morgan Stanley & Co. LLC and RBC Capital<br />
Markets are serving as financial advisors to<br />
TFI. Scudder Law Firm, P.C., L.L.O. is serving<br />
as legal advisor to TFI. 8<br />
The Trucker is a semi-monthly, national newspaper for the<br />
trucking industry, published by The Trucker Media Group at<br />
1123 S. University, Suite 325<br />
Little Rock, AR 72204-1610<br />
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Columnist<br />
Kris Rutherford<br />
krisr@thetruckermedia.com<br />
Minnesota tests ‘snowplow alert’ signs to boost safety on I-35<br />
THE TRUCKER NEWS SERVICES<br />
OWATONNA, Minn. — Drivers on Interstate<br />
35 in southern Minnesota might have<br />
noticed new “snowplow alert” messages on<br />
digital highway signs recently, warning of<br />
slow-moving maintenance vehicles ahead.<br />
It’s all part of a test of the technology that<br />
activates the signs that’s being conducted by<br />
the Minnesota Department of Transportation<br />
(MnDOT).<br />
“Alerting motorists that they’re approaching<br />
a slow-moving snowplow can improve<br />
safety for our operators and motorists,” said<br />
Ron Heim, MnDOT’s maintenance supervisor<br />
in Owatonna. “MnDOT is focused on safety<br />
and we think this use of technology will help<br />
everyone on the road.”<br />
The department has equipped 10 MnDOT<br />
snowplows that operate along I-35 between<br />
Iowa and Northfield with technology that activates<br />
the digital message signs as they pass.<br />
During snow events, signs notify drivers:<br />
“Snowplow ahead, use caution.” During nonsnow<br />
conditions, the message alerts: “Maintenance<br />
vehicle ahead, use caution.” The message<br />
stays activated for several minutes after<br />
the MnDOT vehicles pass.<br />
Courtesy: Minnesota Department of Transportation<br />
The Minnesota Department of Transportation is testing technology that activates digital message<br />
signs alerting motorists to slow-moving snowplows along a stretch of Interstate 35 in the<br />
southern part of the state.<br />
Snowplows can create “snow clouds” when<br />
clearing roads at slower speeds. Warning signs<br />
can also be used at other times of year for uses<br />
such as maintenance work when crews are<br />
repairing high-tension cable median guard or<br />
striping roads.<br />
Data from the past few years shows that many<br />
crashes involving snowplows were rear-end<br />
collisions when motorists strike the back of the<br />
snowplow. MnDOT hopes using this technology<br />
and warning system could reduce and prevent<br />
these types of crashes in the future.<br />
MnDOT snowplows and maintenance vehicles<br />
use existing automatic location technology<br />
and the signs are equipped to receive the signal<br />
See Snowplow on p5 m<br />
Contributing Writers<br />
Sarah DeClerk<br />
Dwain Hebda<br />
Sam Pierce<br />
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