Fortune Brands' board approves final plans to spin off company's home and security business, change remaining liquor company's name to Beam Global Spirits and Wine
August 26, 2011
– Fortune Brands Inc. said Thursday that its board approved final plans to spin off the company's home and security business to a separate company in October and change the remaining liquor company's name to Beam.
Fortune Brands Home & Security is to stand alone as of the close of business Oct. 3 and trade independently on the New York Stock Exchange the next day under the ticker symbol FBHS. That business makes Moen faucets, several brands of kitchen cabinets, doors and windows, and Master Lock security products.
The renamed Beam Global Spirits and Wine Inc., which makes a variety of alcohol products, including Jim Beam and Maker's Mark bourbon and Canadian Club whiskey, is to begin trading under the ticker symbol BEAM Oct. 4.
The Securities and Exchange Commission and the New York Stock Exchange must still sign off on the plan.
Fortune Brands will receive a cash dividend of $500 million from Fortune Brands Home & Security prior to the spinoff.
Fortune Brands stockholders will receive one share of Fortune Brands Home & Security for each share they hold of Fortune Brands as of 5 p.m. Central time Sept. 20 and retain through Oct. 3.
Fortune Brands expects that a "when-issued" public trading market for both Beam and Fortune Brands Home & Security common stock will begin about Sept. 16 and continue through the distribution date.
Shares of Fortune Brands common stock will continue to trade on the New York Stock Exchange under the symbol FO through the distribution date. After the spinoff the FO ticker will be discontinued.
Fortune Brands, based in Deerfield, Ill., recently sold its golf business, which included the maker of Titleist golf balls, for $1.2 billion.
The company's shares fell 68 cents to close Thursday at $53.49. The company announced the board's approval of its spinoff plan before the markets closed. Its shares rose 17 cents after hours. They have traded between $42.55 and $65.48 the past year.
© 2017 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.