Fortune Brands sells Acushnet golf business to South Korea's Fila for $1.2 billion

Fortune Brands, a leading consumer brands company and owner of Jim Beam bourbon whisky, today said that it would sell its Acushnet Company golf business to a group of South Korean investors that include sporting goods retailer Fila, for $1.2 billion, in cash.

Acushnet, whose brands include the iconic Titleist and FootJoy, is being sold 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.

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.

From the sale price of $1.2 billion, Fortune Brands estimates to realise net proceeds of approximately $1.1 billion after taxes and expenses.

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