The Wall Street Journal reported on its Web site Tuesday evening that Fortune Brands - the conglomerate whose Acushnet division owns the Titleist, FootJoy and Pinnacle golf brands - has decided to split the company up and spin off or sell Acushnet.
The Journal first reported discussions of such a possibility back in November. Now, according to the Journal, Fortune Brands has decided to see what the market offers for Acushnet, and might publicly reveal the decision as early as Wednesday.
Acushnet is the world's largest golf company as measured by net profit, according to the Journal, with 45-percent (and growing) of its revenue coming from outside the U.S.
Acushnet "is expected to attract interest from golf and sporting-goods companies in Asia as well as private-equity firms, the people familiar with the matter said," the Journal reported. "Fortune Brands hasn't decided yet whether to spin the unit off or sell it outright."
A spin-off means that Acushnet would become an independent company, with its brands (and likely its management teams) intact, and with Fortune Brands shareholds receiving equity in the newly create independent.
A sale - well, we all know what that means. It means a lot of sporting goods companies around the world will consider becoming the new owners of Titleist clubs and balls, of Vokey wedges and Scotty Cameron putters, of FootJoy shoes and gloves.
Update: A news release from Acushnet on Wednesday morning confirms the plan to spin off or sell the golf division of Fortune Brands:
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The Journal first reported discussions of such a possibility back in November. Now, according to the Journal, Fortune Brands has decided to see what the market offers for Acushnet, and might publicly reveal the decision as early as Wednesday.
Acushnet is the world's largest golf company as measured by net profit, according to the Journal, with 45-percent (and growing) of its revenue coming from outside the U.S.
Acushnet "is expected to attract interest from golf and sporting-goods companies in Asia as well as private-equity firms, the people familiar with the matter said," the Journal reported. "Fortune Brands hasn't decided yet whether to spin the unit off or sell it outright."
A spin-off means that Acushnet would become an independent company, with its brands (and likely its management teams) intact, and with Fortune Brands shareholds receiving equity in the newly create independent.
A sale - well, we all know what that means. It means a lot of sporting goods companies around the world will consider becoming the new owners of Titleist clubs and balls, of Vokey wedges and Scotty Cameron putters, of FootJoy shoes and gloves.
Update: A news release from Acushnet on Wednesday morning confirms the plan to spin off or sell the golf division of Fortune Brands:
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 spin-off of the Acushnet Company.Acushnet boss Wally Uihlein is quoted in the release saying, "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. 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."
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