Fortune Brands Innovations Inc. has successfully completed the previously announced spin-off of its cabinets business, MasterBrand Inc. The separation creates two independent, publicly-traded companies. The company’s previously announced name change to Fortune Brands Innovations Inc. and stock ticker change to FBIN is also effective.

“Since we announced the intent to separate, our teams have been hard at work ensuring that both Fortune Brands and MasterBrand are prepared for future success and growth opportunities. I am proud today to say that we have successfully met that goal,” said Fortune Brands CEO Nicholas Fink. “I’m so impressed with what our teams have accomplished and excited for the future of both these companies, as this separation represents a catalyst to pursue our unique paths for growth and create increased value for consumers, customers and shareholders.”

The separation was completed through the distribution of all outstanding shares of MasterBrand common stock to Fortune Brands common stockholders of record on Friday, December 2, 2022. As of December 15, the company’s name is Fortune Brands Innovations Inc., and shares of the company will trade on the New York Stock Exchange under the symbol “FBIN.” MasterBrand will begin “regular way” trading under the symbol “MBC.”

Michael Collins, a partner in Building Industry Advisors and a columnist for [DWM] magazine, says publicly-traded companies such as Fortune have a legal obligation to maximize value on behalf of shareholders.

“One way to do that is to acquire companies or increase profits through organic growth,” Collins says. “In this case, the Fortune board clearly believed that the market was not correctly valuing the two divisions of the company as a single entity. Their announcement communicates that they believe shareholder value will increase once the market is able to value these two divisions as separate companies. If that is the case, the shareholders really win, since such separations are typically done with no immediate tax implications for the shareholder base.”

Leading up to the separation, the company outlined its go-forward path and strategy as Fortune Brands Innovations. Underpinned by leading brands, Fortune Brands operates in the three categories of water, outdoors and security, powered by secular tailwinds including water management, connected products, outdoor living, material conversion, sustainability, safety and wellness.

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