Fortune Brands’ decision to sell or spin off its Acushnet Company golf division (Titleist, FootJoy) had been anticipated for weeks, if not months, in golf industry circles. Nevertheless, the fate of Acushnet will make for considerable speculation the next few months. Callaway Golf Company and Nike, Inc., undoubtedly will be considered top contenders, although if you dig down a little deeper, neither appears to be viable potential owners.
That’s not to say Callaway, Nike and others, inside and outside the golf industry, won’t “kick the tires’’ if for no other reason but to get a look inside the Acushnet Co. and its $1.2 billion in annual sales, but in this day and age, there only a few companies with the economic and management resources to own Acushnet.
“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,” said Acushnet Chief Executive Officer Wally Uihlein. “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.”
The Fortune Brand’s Board of Directors has directed management to develop detailed separation plans for consideration and final approval by the Board. Fortune Brands said it expects to complete development of these plans – including the structure, timing, and other related matters for each business – within the next several months.
