Fortune Brands Sells Golf Business
A group led by Fila Korea Ltd., the owner of the Fila brand globally, and Mirae Asset Private Equity, the largest private equity firm in Korea, is buying the Acushnet Co. golf business, including the Titleist and FootJoy brands, from Fortune Brands Inc. The $1.225 billion deal represents another step in the break-up of Fortune Brands into separate companies.
With the sale of the golf business, the remainder of the company will be divided into Fortune Brands Home & Security, including Therma-Tru Doors, Simonton Windows and Fypon, and Beam, which will become purely a spirits business, as previously announced.
"This transaction is a very important milestone as we execute our proposed plan to separate our three strong businesses for the purpose of maximizing long-term value for our shareholders," says Bruce Carbonari, Fortune Brands chairman and CEO. "Not surprisingly, the sale process for Acushnet generated broad interest from a range of prospective buyers and resulted in this agreement that reflects the superior performance and prospects of the business. The proceeds from this sale will strengthen Fortune Brands' balance sheet and support strong capital structures for both Beam and Fortune Brands Home & Security as they look to the prospect of competing as independent companies later this year."