Its Official - Fortune Brands to Sell or Spin Off Acushnet Company

Dec 08

Fortune Brands to Sell or Spin Off Acushnet Company

Fairhaven, MA, December 8, 2010 – Acushnet Company today announced that the Board of Directors of its parent company, Fortune Brands, has approved in principle a separation of Fortune Brand’s three businesses in order to maximize long-term value for shareholders. This plan would result in: the continuation of Fortune Brands as an independent, publicly-traded spirits company; the tax-free spin-off to shareholders of the home and security business into an independent, publicly-traded company; and the sale or tax-free spinoff of the Acushnet Company.

The Acushnet Company is the longest running and strongest golf industry success story, and has been very successful as part of the Fortune Brands family. Acushnet is currently the largest and most profitable golf equipment company in the world. With annual sales of $1.2 billion, Acushnet Company includes Titleist, the #1 ball in golf, and FootJoy, the #1 shoe and glove in golf. Titleist is also a leader in high-performance golf clubs, and FootJoy is growing strongly in the performance outerwear category, where it has become the industry leader. New product innovations, including successive generations of the Pro V1 golf ball, and investments in high-growth international markets, have enabled Acushnet to consistently outperform the market on growth and returns.

“The strength of the Acushnet Company as the undisputed global leader in the golf category, and confidence in our growth prospects, were factors contributing to the Board’s decision,” commented Acushnet CEO, Wally Uihlein. “Whether the Acushnet Company is sold to a new owner or becomes an independent publicly-traded company, our focus will be to keep on doing what’s made us the leader in our industry – the delivery of best-in-class products and service to our customers and golf consumers. We look forward to building on our track record of delivering performance and quality superior golf products to serious golfers worldwide.”

The Acushnet Company has a history of successful growth and evolution, even in times of change. Acushnet was founded in 1910 and in 1935 the first Titleist golf ball was brought to market. Fortune Brands acquired the Acushnet Company in 1976, and Acushnet acquired FootJoy in 1985. Acushnet Company’s net sales in 1975 were $51 million and in 2009 had grown to more than twenty-fold that number. Over the past 75 years, the Titleist golf ball has become golf’s standard of excellence, while FootJoy has developed number one positions in the shoe, glove, sock and now outerwear categories.

“Throughout the history of both brands – and the products and people that are the essence of the brands – there have been any number of challenges and new opportunities, and there have always been shareholders that the business has been accountable to. We have a strong history of rising to those challenges and taking advantage of those opportunities, while fulfilling our commitment to our shareholders,” continued Uihlein.

“With our industry leadership, our strong and unique culture, and our talented team, we look forward to a successful transition to new ownership and building the bridge to the next chapter in Acushnet Company’s accomplished history.”

The Fortune Brand’s Board has directed management to develop detailed separation plans for consideration and final approval by the Board. Fortune Brands expects to complete development of these plans – including the structure, timing, and other related matters for each business – within the next several months.


Link is here : http://www.titleist.com/teamtitleist/b/tourblog/archive/2010/12/08/fortune-brands-to-sell-or-spin-off-acushnet-company.aspx

u buying over?

Ouch... that's really quite sad.

Personally, i felt it will be to the advantage of Accushnet to be an independent as a company of it's own, since Accushnet had such a long history of success, afterall, Fortune Brands bought Accushnet in 1976, Fortune Brand did not create Accushnet, IMHO

I hope Titleist won't get absorbed like Ben Hogan...

Perhaps some asian company will acquire Acushnet? Here is where the money is now right?

hoping for peter lim to buy Titleist/Cameron. then we can have a huge Titleist performance center and a Asia PAC Scotty Studio in Singapore. WMF will be happy

WHAT !!!!!!


I just gotten recently a tity wedge and hope that since many better golfers use tity wedge, I can be one too..................AND now this !!!!


NBzzzzzz........like that I better fully migrate to the buttery company....seems more stable

from fortune brands point of view, its a cash out or divestment.

from Acushnet point of view, its a resurgence of investment and brand direction.

however with a spin off, there could be multiple buyers or higher price (becos its not lock stock and barrel), this could be interesting.

Titleist is fundamentally a sound company with no debt and profits so do not get the wrong picture here.

thats the business of business taking its course. if i remember well King Cobra before it was bought over by Acushnet was an Australian company.

In fact it may be good if the new owner is golf-focused rather than investment focused.

DGman

Duval_S wrote:

WHAT !!!!!!


I just gotten recently a tity wedge and hope that since many better golfers use tity wedge, I can be one too..................AND now this !!!!


NBzzzzzz........like that I better fully migrate to the buttery company....seems more stable

Bro DS, it seems you have now being promoted to the SSB or Super Season Beginners club liao. Only those in this category can feel the buttery and soft feel of the Mizzy. For me, I will be forever condemned to be a SBs as I cannot feel any soft and buttery feel as all SSBs are claiming. Congratulations bro for your achievements !

titu
forever SB

Quote :

Tituman wrote:

Duval_S wrote:

WHAT !!!!!!


I just gotten recently a tity wedge and hope that since many better golfers use tity wedge, I can be one too..................AND now this !!!!


NBzzzzzz........like that I better fully migrate to the buttery company....seems more stable

Bro DS, it seems you have now being promoted to the SSB or Super Season Beginners club liao. Only those in this category can feel the buttery and soft feel of the Mizzy. For me, I will be forever condemned to be a SBs as I cannot feel any soft and buttery feel as all SSBs are claiming. Congratulations bro for your achievements !

titu
forever SB

Brudder , A TRUE SB is reflected not in the equipment he or she uses...but rather in terms of ability to play within what the situation calls AND more importantly, having a smile to followup with every game to every flt member.


...just me ' D ' ( SB...................still)

But all the same , you have moved on to the next level with your transition to the Mizzies liao. Would like to have another game with you bro but now, my schedule is so unpredictable. Can't confirm any game at all. MOHA is on the warpath ha ha.

Latest rumor in the market... Scotty Cameron will be making putters for NIKE next year!!!

WAH....

so the hearsay at least what I heard is:

Nike irons are fm Miura

Now...Nike putters are fm Scotties

NExt is driver???......