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TFI International has completed its previously announced acquisition of UPS Freight, the company said April 30.
The UPS division, which is focused on less-than-truckload and dedicated truckload shipments, was acquired by TFI in an $800 million deal announced in January.
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TFI, a transportation and logistics company based in Montreal, said approximately 90% of the acquired business will operate independently within its LTL segment under the new name TForce Freight. The former UPS Freight dedicated truckload assets will be incorporated into TFI’s truckload segment.
As part of the deal, TFI has entered into a five-year contract to use the UPS domestic network to move packages.
In January, Alain Bédard, CEO of TFI, said, “When we talked to the team there at UPS, we all agreed that this is not a one-on-one deal. I think that time will prove that this is like an iceberg. What you see today is just one part of a transaction that could be way bigger over time.”
Meanwhile, days before the sale was finalized UPS Inc. and TFI announced leadership changes.
UPS said April 29 that UPS Freight President Rich McArdle will retire from the Atlanta-based company in June after more than 39 years of service. In the next several weeks, he will continue to work on the transition of the company to TFI International until his retirement becomes official.
McArdle has led UPS Freight for five years, managing more than 14,000 employees while achieving record profits for the division, the company said. McArdle began his career in 1982 in Kentucky as a part-time pre-loader and worked his way up the ranks. By 1990, he was promoted to run the international air hub in Louisville. Then he relocated to run air and ground operations in Colorado and Southern California.
Outside of UPS, McArdle serves on several nonprofit and industry boards, including the United Way of Greater Richmond and Petersburg. He also serves on boards of Truckers Against Trafficking, American Trucking Associations, the American Transportation Research Institute, the Trucking Cares Foundation, the Virginia Business Council and Venture Richmond.
Meanwhile, TFI International has announced Paul Hoelting, former UPS Freight senior vice president of sales and marketing, began leading TForce Freight May 1.
Hoelting has more than three decades of experience in transportation, beginning in 1990 when he joined Union Pacific Railroad. In 1993, he accepted an assignment with LTL carrier Overnite Transportation, which at the time was owned by Union Pacific.
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Hoelting has held various positions throughout UPS, including his most recent assignment.
The sale of UPS Freight to TFI International may not be the last purchase for the Canadian company.
Bédard said in a Feb. 8 conference call with industry analysts that TFI will put any subsequent large acquisitions on pause while it integrates UPS Freight, but noted that the company is constantly looking at small, strategic deals that add to its business.
Earlier in February, TFI announced a deal to purchase Fleetway Transport Inc. of Brantford, Ontario, a truckload and heavy-haul motor carrier.
TFI International ranks No. 11 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. UPS Inc. ranks No. 1 on the TT 100 list.
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