FedEx Rises on Freight Spinoff’s ‘Compelling’ Valuation Numbers

FedEx Corp. shares soared after the company said it plans to spin off its freight division into a separate publicly traded company in a deal that will streamline the parcel giant.

With revenue of $9.4 billion last year, FedEx Freight will become the largest player by sales in an industry that specializes in carrying shipments from multiple customers on a single truck. FedEx said Thursday that it will separate the unit, which Bloomberg Intelligence estimates has an enterprise value of more than $30 billion, within the next 18 months.

Chief Executive Officer Raj Subramaniam said the move will help ...