FedEx shareholders will receive one FedEx Freight share per FDX share in a tax-free spinoff valued at 25X earnings.
FedEx Corporation will spin off FedEx Freight in a tax-free transaction set for June 1. Shareholders will receive one share of FedEx Freight (FDXF) for each FDX share held on the record date.
The unit, valued at about 25 times earnings, trades below peers at 30X to 40X. Management targets 4% to 6% revenue CAGR and 10% to 12% adjusted operating income growth, alongside over $1 billion in free cash flow.
FedEx Freight operates as the largest North American less-than-truckload carrier, with plans to exit rapid transition agreements and increase automation using AI.