Fortune Brands Takes Another Step Toward Home & Security Business Spin-Off
Therma-Tru Doors, Simonton Windows and Fypon, with 2010 revenues of $601 million, will form the Advanced Material Window & Door Systems unit of the proposed Fortune Brands Home & Security business, according to a recent Securities & Exchange Commission filing. Fortune Brands Inc. submitted an initial Form 10 Registration Statement for the Home & Security business yesterday as part of its plan to separate its three main businesses.
Fortune Brands, based in Deerfield, Ill., also announced that it currently anticipates the proposed separation of its businesses to be completed early in the fourth quarter. As previously announced, Home & Security will become a new publicly-traded company in a tax-free transaction, the Acushnet golf business will be sold or spun off, and the remaining buiness will be "a pure-play spirits company" to be named Beam.
“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,” says Bruce Carbonari, Fortune Brands chairman and CEO. “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.”
In addition the the Advanced Material Windows & Door Systems business, the new Fortune Brands Home & Security company will also feature kitchen and bath cabinetry, plumbing and accessories, and security and storage businesses.
“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,” reports Chris Klein, president and CEO 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, it is noted.