By Martinne Geller
NEW YORK (Reuters) - Fortune Brands Inc
The announcement comes two months after activist investor William Ackman took an 11 percent stake in the company, whose brands like Jim Beam bourbon, Titleist golf balls and Moen faucets have little strategic overlap.
Under a plan approved by the board, Fortune will spin off its home and security unit to shareholders in a tax-free transaction, and either sell or spin off its golf unit, the company said on Wednesday.
Fortune would remain a publicly traded maker of spirits, with brands including Sauza tequila and Maker's Mark bourbon.
The company expects to finish developing its plans -- including the structure, timing and other related matters for each business -- within the next several months.
The plan is the result of a strategic review conducted by management and the board over the past four years, Chief Executive Officer Bruce Carbonari said in a statement.
"While the breadth and balance of our portfolio have served shareholders very well, we see the potential for even greater value by separating our businesses into focused companies," Carbonari said.
He said each of Fortune's three businesses emerged from the economic downturn stronger than anticipated.
He said that in developing the plan, Fortune considered the interests of all its shareholders, from long-term owners to its largest current owner, Ackman's Pershing Square Capital Management, which revealed an 11 percent stake on October 8.
Ackman is known as an activist investor who often pushes for changes at companies. Carbonari said Fortune "found much strategic common ground" with Ackman.
Deerfield, Illinois-based Fortune is the largest U.S.-based spirits company and the fourth-largest premium spirits business in the world. Its rivals in spirits include Diageo
Fortune shares, which closed on Tuesday at $61.15 on the New York Stock Exchange, have gained 17.6 percent in the two months since Ackman's investment.
Fortune's current market capitalization is $9.33 billion.
(Reporting by Martinne Geller; Editing by Lisa Von Ahn, Derek Caney and John Wallace)