DEERFIELD, IL -- Fortune Brands, Inc. (NYSE: FO) today announced that its Fortune Brands Home & Security business has filed an initial Form 10 Registration Statement with the Securities & Exchange Commission in connection with its proposed spin-off from Fortune Brands. The spin-off is part of the company’s proposed plan to separate its three businesses by spinning off Home & Security in a tax-free transaction, selling or spinning off its Acushnet golf business, and remaining a pure-play spirits company to be named Beam. The company announced yesterday that it currently anticipates completing the proposed separation of its businesses early in the fourth quarter.
“Filing the Form 10 is another important milepost as we execute our proposed plan to separate our businesses in order to maximize long-term value for our shareholders,” said Bruce Carbonari, chairman and chief executive officer of Fortune Brands. “The Form 10 details historical operating results for Home & Security, as well as the strategy and fundamentals that we believe position the business to create substantial value for shareholders as the home products market recovers.”
Among the disclosures in the Form 10 are the four segments by which Home & Security will report results as a standalone company: Kitchen & Bath Cabinetry, Plumbing & Accessories, Advanced Material Windows & Door Systems, and Security & Storage.
“As detailed in the Form 10, each of Home & Security’s segments was solidly profitable in 2010 and is competitively well positioned with excellent prospects to leverage and drive growth and returns as the home products market recovers,” said Chris Klein, president and chief executive officer of Fortune Brands Home & Security. “Our leading market positions, sustained strategic investments, business momentum, and lean and flexible supply chains position Home & Security well to outperform in the marketplace. In addition to our focus on strong organic growth, we believe we’ll have the strong capital structure, cash flow and balance sheet to evaluate high-return opportunities to further enhance shareholder value. We believe shareholders will be enthusiastic about our prospects for continued outperformance, value creation and strong earnings growth and returns over the long term.”
The separation remains subject to completion of detailed separation plans, customary regulatory approvals and final Board approval.
About Fortune Brands
Fortune Brands, Inc. is a leading consumer brands company. Its operating companies have premier brands and leading market positions in distilled spirits, home and security, and golf products. Beam Global Spirits & Wine, Inc. is the company's premium spirits business. Major spirits brands include Jim Beam and Maker's Mark bourbon, Sauza tequila, Canadian Club whisky, Courvoisier cognac, Cruzan rum, Teacher's and Laphroaig Scotch, EFFEN vodka, Skinnygirl margarita and DeKuyper cordials. The brands of Fortune Brands Home & Security LLC include Moen faucets, Aristokraft, Omega, Diamond and Kitchen Craft cabinetry, Therma-Tru door systems, Simonton windows, Master Lock security products and Waterloo storage and organization products. Acushnet Company's golf brands include Titleist and FootJoy. Fortune Brands, headquartered in Deerfield, Illinois, is traded on the New York Stock Exchange under the ticker symbol FO and is included in the S&P 500 Index and the MSCI World Index.
SOURCE: Fortune Brands
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