FedEx board approves spinoff of LTL unit

1 day ago 2

Todd Maiden

Wed, May 13, 2026 astatine 11:09 AM CDT 2 min read

FedEx Corp. is officially moving guardant with the spinoff of its less-than-truckload unit, FedEx Freight, pursuing ceremonial support from its committee of directors. The Memphis-based institution announced Wednesday that the separation is acceptable to reason by June 1.

Under the approved plan, FedEx (NYSE: FDX) volition execute a pro rata organisation of 80.1% of FedEx Freight’s outstanding communal banal to its shareholders. Investors of grounds arsenic of Friday volition person 1 stock of the caller standalone institution for each 2 shares of FedEx held. FedEx volition clasp a 19.9% involvement successful FedEx Freight, which it intends to dispose of wrong 24 months done indebtedness repayment oregon dividend distributions to shareholders.

“Today’s announcement is an important measurement arsenic we hole for a seamless separation of the FedEx Freight concern connected June 1,” said Brad Martin, enforcement president of FedEx’s committee and incoming president of FedEx Freight’s board. “As abstracted organizations, FedEx and FedEx Freight volition physique connected their respective manufacture enactment positions to service customers with excellence, portion creating worth for their stockholders.”

FedEx Freight, the nation’s largest LTL carrier, is scheduled to statesman trading connected the New York Stock Exchange nether the ticker awesome “FDXF” connected June 1, portion the bequest institution volition proceed trading nether “FDX.”

The institution said the organisation is expected to beryllium tax-free for U.S. national income taxation purposes.

By splitting the freight operations from its broader explicit and crushed networks, FedEx aims to supply investors with much targeted vulnerability to the LTL marketplace portion allowing the bequest concern to absorption connected its translation strategy.

FedEx began LTL operations successful 1998 with the acquisition of Viking Freight. It acquired American Freightways successful 2001 and Watkins Motor Lines successful 2006. In 2011, it merged its nationalist (Watkins) and determination (Viking and American Freightways) operations into 1 web offering precedence and system services.

FedEx Freight has 40,000 employees, 365 terminals (26,000 doors) and 30,000 vehicles (17,000 tractors), generating astir $9 cardinal successful yearly revenue.

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