This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fortune Brands Announces Details For Spin-off Of Home & Security Unit And Completion Of Business Separation

Fortune Brands, Inc. (NYSE: FO) today announced that its board of directors has approved final plans to separate the company’s businesses and that it expects to spin off the Fortune Brands Home & Security business after the close of business on October 3, 2011. Following the spin-off, Fortune Brands will change its name to Beam and operate as a pure-play spirits company.

The spin-off remains conditioned on the SEC declaring effective the Registration Statement on Form 10 filed by Fortune Brands Home & Security, as well as authorization by the New York Stock Exchange and other conditions described in the Information Statement included in the Form 10.

In connection with the separation plan:
  • Fortune Brands will receive a cash dividend of $500 million from Fortune Brands Home & Security prior to the spin-off.
  • Fortune Brands will distribute to its stockholders all of its shares of Fortune Brands Home & Security by means of a share dividend. Except for cash received in lieu of fractional shares, the distribution will not be taxable to U.S. shareholders of Fortune Brands for U.S. income tax purposes.
  • Fortune Brands stockholders will receive one share of Fortune Brands Home & Security for each share of Fortune Brands outstanding as of the record date, 5:00 PM Central Time on September 20, 2011, and retained through the distribution date, October 3, 2011. Home & Security will trade independently on the New York Stock Exchange as of October 4 th under the ticker symbol FBHS.
  • Fortune Brands’ shares will begin trading under the ticker symbol BEAM as of October 4 th. As previously announced, the ticker symbol FO will be discontinued.
  • Fortune Brands expects that a “when-issued” public trading market for both Beam and Fortune Brands Home & Security common stock will begin on or about September 16, 2011, and will continue through the distribution date.
  • Shares of Fortune Brands common stock will continue to trade “regular way” on the New York Stock Exchange under the symbol FO through the distribution date. Any holders of shares of Fortune Brands common stock who sell their Fortune Brands shares “regular way” on or before the distribution date will also be selling their right to receive shares of Home & Security common stock in connection with the spin-off. Investors are encouraged to consult with their financial advisors regarding the specific implications of selling their shares of Fortune Brands common stock on or prior to the distribution date.

“The separation of Fortune Brands’ businesses will give shareholders a compelling opportunity to participate in the significant upside potential we see in both Beam and Fortune Brands Home & Security,” said Bruce Carbonari, chairman and chief executive officer of Fortune Brands. “With their competitive, financial and organizational strengths, we believe each business is well positioned to continue outperforming in the marketplace and generate significant long-term value for shareholders. We are extremely pleased with the progress of our separation plan – we’re in the home stretch, the teams at both Beam and Fortune Brands Home & Security are ready, and we’re looking forward to bright and prosperous futures for two great companies.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs