Shares of United Parcel Service Inc. UPS, +1.30% announced Monday an agreement to sell its UPS Freight (UPSF) business for $800 million to Canada-based trucking company TFI International Inc. TFII, +25.06% TFII, +23.38%. 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 DJT, -0.27% has tacked on 8.2% and the Dow Jones Industrial Average DJIA, -0.33% has advanced 9.4%.
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