Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Jim Beam, neat, is company's new strategy

By Aaron Smith, staff writer


NEW YORK (CNNMoney.com) -- Jim Beam bourbon maker Fortune Brands said Wednesday that it will focus on its liquor business, spinning off or selling other parts of the company, including home furnishings and Titleist golf products.

Fortune Brands said its board voted to separate the three parts of the company. The company will focus solely on Beam Global Spirits & Wine, the business unit that it describes as the leading U.S.-based liquor company. The unit, with $2.5 billion in annual sales, produces Knob Creek, Maker's Mark, Cruzan, Courvoisier, Canadian Club, Teacher's Scotch and other brands.

The company said it will spin off to shareholders its Home & Security unit, including faucet-producer Moen and MasterBrand Cabinets, as well as Master Lock. The unit, which has $3 billion in annual revenue, will become an independent, publicly traded company.

Fortune Brands said it will sell its golf unit, the Acushnet Company, which produces Titleist golf balls and FootJoy shoes and gloves. The unit has $1.2 billion in annual revenue.

Fortune Brands' (FO, Fortune 500) stock rose about 3% in premarket trading.

"While the breadth and balance of our portfolio have served shareholders very well, we see the potential for even greater value by separating our businesses into focused companies at a time when they have emerged from the economic downturn in such strong positions," said Bruce Carbonari, chief executive of Fortune Brands. To top of page

Index Last Change % Change
Dow 16,027.05 -177.92 -1.10%
Nasdaq 4,283.75 -79.39 -1.82%
S&P 500 1,853.44 -26.61 -1.42%
Treasuries 1.74 -0.11 -6.11%
Data as of 11:16pm ET
Company Price Change % Change
Bank of America Corp... 12.27 -0.68 -5.25%
Chesapeake Energy Co... 2.04 -1.02 -33.33%
Facebook Inc 99.75 -4.32 -4.15%
Freeport-McMoRan Inc... 5.27 -0.41 -7.22%
Williams Companies I... 11.16 -5.96 -34.81%
Data as of 4:15pm ET
Sponsors

Sections

A former deputy secretary in Obama's Department of Education will take over the University of Phoenix's parent company, Apollo Education Group, once the sale is finalized. More

Yelp announced another loss Monday afternoon as its sales growth slows. The company also said its CFO is stepping down. More

Zenefits founder and CEO Parker Conrad steps down. COO David Sacks takes over, with a call to fix compliance issues and change the company's culture. More

Nonprofit JumpStart has launched a new $10M fund that will only invest in women and minority-led startups. The catch: You have to move to Ohio. More

A former deputy secretary in Obama's Department of Education will take over the University of Phoenix's parent company, Apollo Education Group, once the sale is finalized. More