Fortune Brands completes $1.23-bn sale of golf unit to Fila's owners

Fortune Brands, a leading consumer brands company and owner of Jim Beam bourbon whisky, moved close to splitting itself up after it today completed the $1.2-billion sale of Acushnet, its golf business to Korean investors.

Fortune, which acquired Acushnet in 1976, had announced in December last year that it would split the company into three separate businesses by spinning 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 (See: Maker of Jim Beam bourbon Fortune Brands plans three-way split)

In May this year, the Deerfield, Illinois-based company announced that it would sell Acushnet, whose brands include the iconic Titleist and FootJoy, to a group led by Fila Korea Ltd, the owner of the Fila brand globally, Mirae Asset Private Equity, the largest private equity firm in Korea, National Pension Service of Korea, the fourth largest pension fund in the world and Korea Development Bank, Korea's largest government-owned bank, for $1.2 billion. (See: Fortune Brands sells Acushnet golf business to South Korea's Fila for $1.2 billion).

Fila Korea has more than 500 distribution outlets, including 300 franchise stores and ranks as one of the top sportswear brands in Korea, while Mirae has more than $133 billion in assets under management.

Acushnet is the leading and most profitable golf equipment company in the world. Titleist is the No1 golf ball brand and a leader in high-performance golf clubs. FootJoy is the No1 shoe and glove maker in golf and a leader in performance outerwear.

Sales of both brands exceeded $1.2 billion in 2010, with nearly half of revenues generated in markets outside the US.