FedEx Corp. has completed the spin-off of its less-than-truckload division, creating two independent publicly traded companies.
The newly separated FedEx Freight began trading June 1 on the New York Stock Exchange under the ticker symbol FDXF, while FedEx continues trading under FDX.
FedEx said the move positions both companies to focus on their respective markets and deliver long-term shareholder value.
“The successful separation of FedEx Freight is a pivotal milestone, positioning two independent companies to lead their respective industries and create long-term value for their stockholders,” said Raj Subramaniam, president and CEO of FedEx.
He added the spin-off will allow FedEx Freight to build on its “market-leading scale and customer-focused culture,” while enabling FedEx to continue focusing on its global transportation and logistics network.
The separation was completed through a distribution of 80.1% of FedEx Freight shares to existing FedEx shareholders. Investors received one share of FedEx Freight for every two shares of FedEx held as of May 15.
FedEx retained a 19.9% stake in the LTL carrier, which it said will be disposed of within 24 months through debt repayment transactions or additional shareholder distributions.
FedEx Freight enters the market as one of North America’s largest LTL carriers, operating an extensive network across the U.S., Canada, and Mexico.
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