UPS to Sell Trucking Unit Under CEO’s ‘Better-Not-Bigger’ Pledge

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UPS to Sell Trucking Unit Under CEO’s ‘Better-Not-Bigger’ Pledge - Yahoo

United Parcel Service Inc. agreed to sell its short-haul trucking business for $800 million, the first substantial move in the “better-not-bigger” strategy that Carol Tome developed since taking over as chief executive officer in June.

Canada’s TFI International Inc. will acquire the unit, one of the largest less-than-truckload carriers in the U.S., UPS said in a statement Monday. The eight-decades-old unit, separate from the package-delivery operation for which UPS is known, is primarily a business-to-business enterprise hauling large industrial cargo in big trucks.

“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,” Tome said in the statement. UPS will take a $500 million charge related to the sale, which is expected to be concluded in the second quarter.
 
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