DEERFIELD, Ill.--(BUSINESS WIRE)--Fortune Brands, Inc. late today will complete the previously announced separation of its business units with the successful spin-off of the Fortune Brands Home & Security business (NYSE: FBHS). Immediately following the spin-off, Fortune Brands will change its name to Beam Inc. (NYSE: BEAM), reflecting its singular focus as a leading global premium spirits company. Each company will begin trading independently on the New York Stock Exchange effective tomorrow, Tuesday, October 4th. The “FO” stock ticker symbol is being discontinued.
As previously announced, Fortune Brands stockholders will receive one share of Fortune Brands Home & Security in the spin-off for each share of Fortune Brands common stock they held of record as of September 20, 2011. Following the spin-off, Fortune Brands stockholders will retain shares in Beam (formerly Fortune Brands). Fortune Brands will also receive a cash dividend of $500 million from Home & Security prior to the spin-off.
“Completing the separation of Fortune Brands’ businesses creates the opportunity for shareholders to participate in the upside we see in two industry-leading businesses that have strong brands, sharply focused strategies, and proven and motivated management. Both businesses have strong momentum and are outperforming their respective markets,” said Bruce Carbonari, chairman and chief executive officer of Fortune Brands. “I’m excited for the journey that lies ahead for both Beam and Home & Security. Each company has a future of great Fortune.”
“Beam begins its future as a pure-play spirits company with strong momentum and compelling growth prospects,” said Matt Shattock, president and chief executive officer of Beam. “We believe our unique combination of scale with agility, plus our focused strategy, position us well to outperform and consistently deliver strong, profitable, long-term growth in a highly profitable global industry.”
Chris Klein, chief executive officer of Fortune Brands Home & Security, said: “As we become a standalone company, we are executing well on our strategy, our proven business model is working, and we’re outperforming our markets. We see great opportunity to leverage our leadership positions, marketplace success, and lean and flexible cost structure to accelerate profitable growth as the housing market recovers.”
Last December, Fortune Brands announced its intention to separate the three businesses it then owned. The company subsequently sold its Acushnet Company golf business in July for $1.225 billion and then executed the spin-off of Fortune Brands Home & Security, to occur at 11:59 PM ET today. The company has been known as Fortune Brands since 1997, having previously been named American Brands. Both Beam and Fortune Brands Home & Security remain headquartered in Deerfield, Illinois.
About Beam Inc.
As one of the world’s leading premium spirits companies, Beam is Crafting the Spirits that Stir the World. Consumers from all corners of the globe call for the company’s brands, including Jim Beam® Bourbon, Maker's Mark® Bourbon, Sauza® Tequila, Canadian Club® Whisky, Courvoisier® Cognac, Teacher's® Scotch Whisky, Laphroaig® Scotch Whisky, Cruzan® Rum, Hornitos ™ Tequila, Knob Creek® Bourbon, EFFEN® Vodka, Pucker™ Flavored Vodka, Larios® Gin, Whisky DYC®, DeKuyper® Cordials, and Skinnygirl® Cocktails. The Beam portfolio includes 10 of the world’s top 100 premium spirits brands and some of the industry’s fastest growing innovations. Beam is focused on delivering superior performance with its unique combination of scale with agility and a strategy of Creating Famous Brands, Building Winning Markets and Fueling Our Growth. Beam and its 3,200 passionate associates worldwide generated 2010 sales of $2.7 billion on volume of 33 million 9-liter cases.
Headquartered in Deerfield, Illinois, Beam will be traded on the New York Stock Exchange under the ticker symbol BEAM and is included in the S&P 500 Index and the MSCI World Index. For more information on Beam, its brands, and its commitment to social responsibility, please visit www.beamglobal.com and www.drinksmart.com.
About Fortune Brands Home & Security, Inc.
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, Ill., creates products and services that help fulfill the dreams of homeowners and help people feel more secure. The company’s trusted brands include Master Lock, MasterBrand cabinets, Moen faucets, Simonton windows and Therma-Tru entry door systems. FBHS holds market leadership positions in all of its segments. The company’s 16,000 associates generated more than $3.2 billion in net sales in 2010. FBHS will be part of the S&P MidCap 400 Index. For more information, please visit www.fbhs.com.
This press release contains statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these forward-looking statements speak only as of the date hereof, and the company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date of this release. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: general economic conditions, including the U.S. housing and remodeling market; the expiration of government economic stimulus programs; competitive market pressures (including pricing pressures); successful development of new products and processes; consolidation of customers; customer defaults and related bad debt expense; unanticipated developments that delay or negatively impact the proposed separation; disruption to operations as a result of the proposed separation; inability of one or more of the businesses to operate independently following the completion of the proposed separation; risks pertaining to strategic acquisitions and joint ventures, including the potential financial effects and performance of such acquisitions or joint ventures, and integration of acquisitions and the related confirmation or remediation of internal controls over financial reporting; any possible downgrades of the Company's credit ratings; volatility of financial and credit markets, which could affect access to capital for the Company, its customers and consumers; interest rate fluctuations; commodity and energy price volatility; risks associated with doing business outside the United States, including currency exchange rate risks; ability to secure and maintain rights to intellectual property; inability to attract and retain qualified personnel; the status of the U.S. rum excise tax cover-over program; the impact of excise tax increases on distilled spirits; dependence on performance of distributors and other marketing arrangements; costs of certain employee and retiree benefits and returns on pension assets; tax law changes and/or interpretation of existing tax laws; potential liabilities, costs and uncertainties of litigation; historical consolidated financial statements that may not be indicative of future conditions and results; impairment in the carrying value of goodwill or other acquired intangible assets; weather and natural disasters; as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.