Fortune Brands Home & Security Inc. announced it intends to separate into two publicly traded companies.
Fortune Brands’ Board of Directors authorized the Company to pursue a tax-free spin-off of its Cabinets business into a standalone publicly traded company. Upon closing of the proposed separation, shareholders would hold interests in two companies. A potential separation is subject to further Board approval and other customary conditions and is expected to take approximately 12 months to complete.
“We are excited to be taking the next step in our value creation journey for stakeholders. There is much work to be done, but together with the rest of our Board, I believe that this separation will enable each company to recognize its full potential and unlock even greater long-term stakeholder value,” says Nicholas Fink, CEO, Fortune Brands. “Each company will pursue independent paths with fit-for-purpose strategies supported by thoughtful investments. Our entire company has delivered exceptional results over the past 10 years, and our cabinets business has implemented the capabilities and demonstrated the performance required to thrive as an independent entity. The separation will result in two world class businesses with the scale, winning strategies, capabilities and leadership to sustain and accelerate value creation. We are very excited for the future.”
The company will be advised on the proposed separation by Ardea Partners, Barclays, Rothschild & Co., and Sidley Austin LLP.
