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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 4
th. 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.”