FedEx Sells Supply Chain Unit in $1.4 Billion CMA CGM Deal

FedEx Corp. NYSE:FDX said it agreed to sell FedEx Supply Chain to French container shipping group CMA CGM in a deal carrying an enterprise value of $1.4 billion. The transaction would expand CMA CGM's position in North American contract logistics, adding warehousing, distribution and fulfillment capabilities through FedEx's third-party logistics unit.

FedEx also plans to enter a multiyear air and ocean freight agreement with CMA CGM. CMA CGM said the agreements are expected to generate $3.5 billion in revenue over the next decade, strengthening its broader push into logistics, ports, terminals and air cargo.

For FedEx, the sale advances its effort to streamline the portfolio and focus more sharply on its core parcel business. The company has already combined its ground and air freight networks, pursued major cost cuts, and spun off its freight business as a publicly traded company last month. FedEx shares rose less than 1% Wednesday morning in New York.