Simonton Part of Fortune’s Home and Security Spin-OffDecember 9th, 2010 | Category: Industry News
Simonton Windows® is part of the new Home & Security business that is expected to be spun off by Fortune Brands Inc. (NYSE: FO) in 2011. Plans were announced on December 8, 2010 for the Home & Security business unit to be spun off as an independent, publicly-traded company to current Fortune Brands shareholders.
“We’re excited that Simonton Windows is positioned for continued growth as a market leader in the new Home & Security business that’s being developed,” says Mark Savan, president of Simonton Windows. “The new structure will provide us with excellent opportunities for our brand to be a key participant in a stand-alone publicly-traded company purely focused on the home products market.
“While details are still being finalized, we anticipate this exciting development will take place within the next six to nine months. During and after the transition we expect no changes in our operations. Every Simonton Associate will continue to focus on providing the same top-quality products and services in the future as we offer to our customers today.”
As part of its announcement, representatives of Fortune Brands communicated that its Board of Directors unanimously approved, in principle, a separation of the company’s three strong consumer businesses – distilled spirits, home and security and golf products. The plan that the company intends to pursue includes: the continuation of Fortune Brands as an independent, publicly-traded company focused solely on its distilled spirits business; 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 spin-off of the golf business. Management has been directed to develop detailed separation plans for consideration and final Board approval.
Fortune Brands Home & Security LLC, has annual sales exceeding $3 billion, and these include door manufacturer Therma-Tru (which includes Fypon), as well as Simonton.
“We are taking the next logical step in the evolution of Fortune Brands, which we believe will maximize long-term value for our shareholders and create exciting opportunities within our businesses,” says Bruce Carbonari, chairman and chief executive officer of Fortune Brands. “Today’s announcement is the result of an ongoing strategic review process conducted by the Board and management over the past four years that included regular evaluation of separating the businesses at the right time to serve the best interests of our shareholders. 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. We believe now is the right time to move ahead with this tax-efficient approach, and we’re confident the course we’ve outlined today generates greater potential long-term value than all other alternatives.”