In its latest effort to split into three separate businesses, Fortune Brands (FO) said on Friday that it is selling its Acushnet golf business to a group led by sport and leisure apparel company Fila Korea for $1.225 billion.
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Fortune said it plans on booking proceeds from the business, which makes the iconic Titleist golf balls and FootJoy golf shoes and gloves, of roughly $1.1 billion after taxes and expenses. The unit had more than $1.2 billion in sales last year.
“This transaction is a very important milestone as we execute our proposed plan to separate our three strong businesses for the purpose of maximizing long-term value for our shareholders,” said Fortune CEO Bruce Carbonari.
Following a strategic review by its board and management, Fortune Brands launched a process to sell Acushnet after announcing in December that it planned on splitting into three separate businesses to focus on its distilled liquors.
The Deerfield, Ill.-based company, which makes Jim Beam whiskey and Cruzan rum, intends on spinning off its home and security business by the fourth-quarter to become a pure-play distilled spirits company named Beam.
The golf business sale has been approved by both boards of directors and is subject to regulatory approvals and other customary closing conditions. Fortune said the deal is slated to close this summer.