(Reuters) -Delivery giant FedEx said on Monday it has appointed insider John Smith as CEO of its freight trucking spinoff, FedEx Freight.
Smith, who is the chief operating officer of the company’s U.S. and Canada business, has been with the company for more than 25 years.
He was CEO of the FedEx Freight business between 2018 and 2021 and was responsible for growth in the company’s revenue and operating income while navigating it through the pandemic.
The company first announced the separation of its freight trucking segment in December 2024 as it restructured to allow for more customized operational execution in the global parcel and trucking markets.
Analysts had long argued that freight is undervalued within FedEx, as it is the largest provider of less-than-truckload (LTL) services in the U.S.
LTL involves carrying multiple shipments from different customers on a single truck, which are then routed through a network of service centers where they get transferred to other trucks with similar destinations.
According to estimates from Citi, the independent company could be valued between $30 billion and $35 billion.
“While there remain openings on the executive team, this begins to finalize what the independent FedEx Freight business will look like in 2026,” Daniel Imbro, analyst at Stephens wrote.
The divestiture is expected to be completed by June 2026. Until then, Smith will serve in his current role.
Fedex also said its board vice chairman Brad Martin has agreed to serve as the chairman of FedEx Freight.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Arun Koyyur)
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