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Posted: December 8, 2010
• Acushnet Company Press Release (.pdf) • Fortune Brands Press Release (.pdf)Fairhaven, MA, December 8, 2010 – Acushnet Company today announced that the Board of Directors of its parent company, Fortune Brands, has approved in principle a separation of Fortune Brand’s three businesses in order to maximize long-term value for shareholders. This plan would result in: the continuation of Fortune Brands as an independent, publicly-traded spirits company; the tax-free spin-off to shareholders of the home and security business into an independent, publicly-traded company; and the sale or tax-free spinoff of the Acushnet Company.The Acushnet Company is the longest running and strongest golf industry success story, and has been very successful as part of the Fortune Brands family. Acushnet is currently the largest and most profitable golf equipment company in the world. With annual sales of $1.2 billion, Acushnet Company includes Titleist, the #1 ball in golf, and FootJoy, the #1 shoe and glove in golf. Titleist is also a leader in high-performance golf clubs, and FootJoy is growing strongly in the performance outerwear category, where it has become the industry leader. New product innovations, including successive generations of the Pro V1 golf ball, and investments in high-growth international markets, have enabled Acushnet to consistently outperform the market on growth and returns.
“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,” commented Acushnet CEO, 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 Acushnet Company has a history of successful growth and evolution, even in times of change. Acushnet was founded in 1910 and in 1935 the first Titleist golf ball was brought to market. Fortune Brands acquired the Acushnet Company in 1976, and Acushnet acquired FootJoy in 1985. Acushnet Company’s net sales in 1975 were $51 million and in 2009 had grown to more than twenty-fold that number. Over the past 75 years, the Titleist golf ball has become golf’s standard of excellence, while FootJoy has developed number one positions in the shoe, glove, sock and now outerwear categories.“Throughout the history of both brands – and the products and people that are the essence of the brands – there have been any number of challenges and new opportunities, and there have always been shareholders that the business has been accountable to. We have a strong history of rising to those challenges and taking advantage of those opportunities, while fulfilling our commitment to our shareholders,” continued Uihlein.“With our industry leadership, our strong and unique culture, and our talented team, we look forward to a successful transition to new ownership and building the bridge to the next chapter in Acushnet Company’s accomplished history.”The Fortune Brand’s Board has directed management to develop detailed separation plans for consideration and final approval by the Board. Fortune Brands expects to complete development of these plans – including the structure, timing, and other related matters for each business – within the next several months.
Ken Roebuck wrote on December 8, 2010 at 12:46PM
To every Season there is a change, I guess we will wait to see if this good or bad.
james goodis wrote on December 8, 2010 at 1:51PM
good luck. good products
Travis R wrote on December 8, 2010 at 1:56PM
Team Titleist,
Thank you for keeping us, the players and consumers of your product updated in what is going on internaly with Acushnet. It is unfortunate what is happening, the company is great how it is and growth from this is hard to see. Hope you stay on track and at the top, keep Titleist, Titleist.
Steve B wrote on December 8, 2010 at 2:07PM
wow....that's BIG news. Just don't change ANYTHING about the balls, clubs, shoes or gloves and we'll stay loyal!!
Bob Mallow wrote on December 8, 2010 at 2:09PM
I was quite surprised by this news of the spin offs. I have and always will be a Titleist & Footjoy loyal supporter and wish it the best of luck in the future as a stand alone company.
jcpgapro65 wrote on December 8, 2010 at 2:20PM
Hopefully you will keep the titelist Team in tact. I've been a PGA member for 17 years and employed in the golf business my entire adult life and without question, the Titleist Sales Representatives (Northern California) are truly the best I've ever been associtated with. From "Johnny G" to Bruce Wilson to Mark Doris to Steve Gardner and Ted Bacci and Rick Overstreet there's no question they are the leaders in the industry!
jim C wrote on December 8, 2010 at 3:07PM
Having been a strong Titleist products user, I do hope that wherever the company is spun off to, I hope they will continue to provide the excellent products that built this company.
Ron S wrote on December 8, 2010 at 5:43PM
I do not know whether to be happy, clap my hands, or to be sad. I have been a long time user of the products in the lines of Fortune Brands. I started playing golf in the 50's and clearly remember the Acushnet Balls. I started out as a caddy using balls I found while playing or in search of the illusive lost ball treasure along course boundaries.
I still use the products from head to toe and shoe. My ball of choice are the Pro V's. I enjoyed the privilege of testing the new ball for Pro V this spring and wrote and submitted a detailed account of their actions on my course.
I hope the lines will continue and progress with the technology for which they are the industry leaders.
Thank you.
Ron Smith
DOGLOSKI wrote on December 8, 2010 at 5:47PM
The "PLUM" of the Fortune Brands tree is Acushnet.
My hope is that Acushnet can become a stand alone entity.
With its history, management and insight into the needs of their clientele it should make an outstanding company.
D. Love wrote on December 8, 2010 at 8:49PM
I believe Acushnet will thrive in a new and seperate environment. I will continue to support the company by purchasing Pro V's , Footjoy shoes, and Titleist clubs and gear. Hit it long and straight!
Tony wrote on December 8, 2010 at 8:54PM
I'm afraid what might happen to the product line, if the company falls into the wrong hands. Please be careful with you're choices. Don't forget about your loyal customers
Bill W wrote on December 8, 2010 at 9:29PM
If the products stay the same, I see no difference but as history in past corporations spliting like this, the products have been less in quality. Less hope that does not happen with your products.
Tom P wrote on December 8, 2010 at 9:42PM
The Acushnet Company has outstanding leadership and will endure all that is thrown at them. The are the leader in the world of golf now and will continue to be he leader in the future. As great as the products are they produce, the people behind the products are even better.
Robert C wrote on December 8, 2010 at 10:01PM
After the Fortune Brand shareholders take some profit, they would be wise to reinvest in Acushnet if offered. I wonder what Fortune is looking to buy. Whatever it is, it must be ready to explode in growth.
ToddL wrote on December 8, 2010 at 10:22PM
With any potential sale or restructuring, we can only hope that the staff that has made The Acushnet Company what it is is retained. They are what makes the company strong and the industry leader.
Tom B wrote on December 9, 2010 at 7:48AM
The change makes me a little nervous that the quality of Titleist products may suffer. I have used Titleist products for 45 years, and if the quality stays at the level it is I will continue to do so.
Hank Kulesza wrote on December 9, 2010 at 10:03AM
Titleist and Footjoy are the gold standard in the golf industry. Acushnet's industry leading position has come from superior products which appeal to the serious golfer.The protfolio of products Acushnet has assembled is far and away the top in the industry and the reason the company has generated such loyal enthusiast as myself.
Gerald Joyce wrote on December 9, 2010 at 10:45AM
I think it is a good move as the executives I assume will all be golf related and educated to the industry moves to keep Acushnet the leader in the golf equipment business.
Team Titleist wrote on December 9, 2010 at 2:16PM
Be assured that it is business as usual at Titleist and you will not see any changes in process, product quality or performance. We will be sure to keep you up to date if and when anything happens regarding a future sale or spin off of Acushnet Company. In the meantime, you can continue to in play and purchase Titleist equipment with complete confidence. As always, thank you for your support. Titleist. Golf's symbol of excellence.
Jeff M wrote on December 10, 2010 at 7:43PM
It could benefit the companies if it keeps the same management teams and R&D working to keep your position in the market place. If done properly it could be a prosperous solution to keep the companies lean and profitable.
