Fortune Brands proposes spinoff of Home & Security
Deerfield, Ill.-based Fortune Brands 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 spinoff from Fortune Brands.
The spinoff 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 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 CEO 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.
Each of the segments was "solidly profitable" in 2010, according to Chris Klein, president and CEO of Fortune Brands Home & Security.
The separation remains subject to completion of detailed separation plans, customary regulatory approvals and final board approval.