The board of Fortune Brands, a leading consumer brands company and owner of Jim Beam bourbon, has approved in principle of splitting the company into three separate businesses, The Wall Street Journal reports.
The Deerfield, Illinois-based Fortune, whose products include single-malt scotch like Laphroaig, Old Grand Dad bourbon, Harveys Sherry, Titleist golf products, and home and security products, is expected to announce its plan to split tomorrow.
But the detail plans of splitting the company will be worked over the next several months and be presented to the board for final approval, said the WSJ.
Fortune is planning to spin off its home and security division to shareholders, either sell or spin off the golf products division, while Fortune Brands liquor company would continue as a publicly traded company.
Fortune's home and security division generates the largest sales and contributed 45 per cent to the company's 2009 revenue of $6.69 billion, while its liquor business contributed 37 per cent and 18 per cent came from its golf products division.
The decision to split the company came after hedge fund manager Bill Ackman recently revealed his 11 per cent holding in Fortune and ramped up pressure on the management to split the company in order to enhance shareholders value.