14.02.2021 Views

021521_TT_AllPages

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

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 />

Chief Executive Officer<br />

Bobby Ralston<br />

bobbyr@thetruckermedia.com<br />

General Manager<br />

Megan Hicks<br />

meganh@thetruckermedia.com<br />

Managing Editor<br />

Wendy Miller<br />

wendym@thetruckermedia.com<br />

Staff Writer/Designer<br />

Linda Garner-Bunch<br />

lindag@thetruckermedia.com<br />

Production Manager<br />

Rob Nelson<br />

robn@thetruckermedia.com<br />

Graphic Artist<br />

Christie McCluer<br />

christie.mccluer@thetruckermedia.com<br />

Special Correspondents<br />

Cliff Abbott<br />

cliffa@thetruckermedia.com<br />

Lyndon Finney<br />

lyndonf@thetruckermedia.com<br />

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 />

For advertising opportunities,<br />

please contact Meg Larcinese<br />

at megl@thetruckermedia.com.<br />

Telephone: (501) 666-0500<br />

Fax: (501) 666-0700<br />

E-mail: info@thetruckermedia.com<br />

Web: www.thetrucker.com<br />

Single-copy mail subscription available at $59.95<br />

per year. Periodicals Postage Paid at Little Rock, AR<br />

72202-9651 and additional entry offices.<br />

Publishers Rights: All advertising, including artwork and<br />

photographs, becomes the property of the publisher<br />

once published and may be reproduced in any media<br />

only by publisher. Publisher reserves the right to refuse or<br />

edit any ad without notice and does not screen or endorse<br />

advertisers. Publisher is not liable for any damages resulting<br />

from publication or failure to publish all or any part<br />

of any ad or any errors in ads. Adjustments are limited to<br />

the cost of space for the ad, or at Publisher’s option, republication<br />

for one insertion with notice received within<br />

three days of first publication. Copyright 2021 of Wilshire<br />

Classifieds, LLC. Subject also to Ad and Privacy Policy at<br />

www.recycler.com.<br />

POSTMASTER:<br />

Send address changes to:<br />

The Trucker<br />

1123 S. University, Suite 325<br />

Little Rock, AR 72204

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!