Montreal-based transportation company TFI International Inc. is shoring up its freight business, announcing Monday that it will acquire UPS Freight for US$800 million.
The transaction, which is expected to close in the second quarter of 2021, will make TFI one of North Americas largest freight services. UPS Freight generated US$3 billion in revenue last year; TFI said it expects the acquisition will be accretive to earnings this year. 
TFI has a proven track record of doing M&A at a very reasonable and attractive price. And once we take over the company, we have a kind of recipe for success, TFI Chairman and Chief Executive Officer Alain Bédard said in an interview Monday.
Right now the profitability is at break-even point. We know that we could do better than that.
Bédard said he thinks TFI can unlock value from UPS Freight by separating it from the larger, delivery-focused corporate entity.
US$3 billion for UPS is like small pocket change, so the level of attention was not really there for UPS, Bédard said.
This is going to be a very important focus of ours. We will be investing capital. We will be investing in people and for sure were convinced that this is going to be a huge success for us.
TFIs Toronto-listed shares soared on the news, jumping 32.25 per cent on Monday to close trading at $86.08. The companys shares had risen nearly 45 per cent over the past 12 months prior to Mondays announcement.
Bédard added in a release that the deal brings his company UPS Freights network of 197 facilities, strengthening TFIs reach when combined with the companys continuing expansion efforts in Mexico.
The merged entity will operate under the name TForce Freight.