By Connor Hart
FedEx said its board approved the spinoff of its freight business, clearing the way for the long-planned separation of FedEx Freight from its parent on June 1.
The breakup, first announced in late 2024, is expected to sharpen FedEx's focus on its core parcel and logistics network, while allowing the freight unit to pursue its own growth strategy.
FedEx Freight, which specializes in less-than-truckload shipping, has said it plans to streamline its network and fleet, modernize technology and accelerate profitable growth as a standalone company.
The unit previously forecast medium-term revenue growth at a 4% to 6% compound annual rate, alongside adjusted operating income growth of 10% to 12%.
Under the spinoff terms, FedEx shareholders will receive one share of FedEx Freight for every two shares of FedEx common stock held.
FedEx will retain 19.9% of FedEx Freight shares and plans to dispose of that stake within 24 months through debt exchanges, shareholder distributions or share swaps, it said.
FedEx Freight will also pay an about $4.1 billion cash dividend to FedEx before the separation, funded through previously issued notes and borrowings under a term loan facility.
Shares of FedEx Freight are set to begin trading on the New York Stock Exchange June 1 under the ticker FDXF.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
May 13, 2026 10:17 ET (14:17 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.