Fortune Brands Inc. announced that its Board of Directors has unanimously approved in principle a separation of the company’s three strong consumer businesses - distilled spirits, home and security (which includes Moen), and golf products. The plan that the company intends to pursue includes:
- the continuation of Fortune
Brands as an independent, publicly traded company focused solely on its
distilled spirits business;
- the tax-free spin-off to shareholders
of the home and security business into an independent, publicly traded company;
- and the sale or tax-free spin-off of the golf business.
The Board has directed management to develop detailed separation plans for consideration and final approval by the Board. The company expects to complete development of these plans - including the structure, timing and other related matters for each business - within the next several months.
As part of Fortune Brands Home & Security LLC, Moen is its largest single brand, contributing to the category’s annual sales of $3 billion. Other brands in the category include MasterBrand Cabinets, Therma-Tru, Simonton and Master Lock. The company has created lean and flexible supply chains by both reducing costs and accelerating productivity initiatives. Significant new business wins, excellent customer service and successful new-product innovations have contributed to its market share gains. With this momentum, combined with the company’s supply-chain flexibility and efficient cost structures, Home & Security is said to have substantial leverage and upside growth and returns potential as the U.S. housing market recovers.
For the full press release, read here or click on the pdf below.
Source: Fortune Brands