Fortune Brands Approves Split; Will Sell or Spin Off Golf Assets

Fortune Brands, the conglomerate that owns golf properties Titlelist, Footjoy and others will sell or spin off those companies as part of a three way split, according to the Wall Street Journal:

[U]nder a plan approved in principle Tuesday by its board of directors, according to people familiar with the matter.

The company intends to spin off its home and security unit to shareholders in a tax-free transaction, and to either sell or spin off its golf division, these people said. Separately, Fortune Brands would remain an independent, publicly traded company focused on liquor brands that include Maker's Mark bourbon and Sauza tequila, the people said.

According to the Journal and other news reports, the company has not decided whether to create a new stand-alone firm (a spin-off) or sell the assets to a buyer.  With the bulk of its recent growth coming from in Asia, Fortune's Acushnet division will probably draw a lot of interest from Asian-based firms, according to financial analysts.

The move has been expected for some time, and comes after rumors had circulated for months that activist investor William Ackman had demanded the changes.