Fortune Brands to spin off home and security business
26 Aug 2011
Fortune Brands Inc, a leading consumer goods company and owner of Jim Beam bourbon, has set 3 October deadline for the spin-off of its home and security business.
The Deerfield, Illinois-based company, whose products include single-malt scotch like Laphroaig, Old Grand Dad bourbon, Harveys Sherry, and home and security products, will operate as a liquor company to be renamed Beam from 4 October and operate as a pure-play spirits company.
"The separation of Fortune Brands' businesses will give shareholders a compelling opportunity to participate in the significant upside potential we see in both Beam and Fortune Brands Home & Security," said Bruce Carbonari, chairman and chief executive officer of Fortune Brands.
"With their competitive, financial and organisational strengths, we believe each business is well positioned to continue outperforming in the marketplace and generate significant long-term value for shareholders,"
In December 2010, the board of Fortune Brands approved splitting the company into three separate businesses, its home and security division remaining with shareholders and either selling or spinning off the golf products division, while Fortune Brands liquor company would continue as a publicly traded company. (See: Maker of Jim Beam bourbon Fortune Brands plans three-way split)
The decision to split the company came after hedge fund manager Bill Ackman in November 2010 revealed his 11 per cent holding in Fortune and ramped up pressure on the management to split the company in order to enhance shareholders value.