Fortune Brands Home & Security’s FBHS board of directors has approved its previously announced separation of the cabinets business MasterBrand, Inc. via a tax-free spin-off.
The cabinets business will separate into a new publicly traded company, allowing both companies to focus on their core capabilities and invest in growth opportunities to drive long-term shareholder value. The segment, generating about 40% of revenues, deals with the production of custom, semi-custom and stock cabinetry, and vanities for the kitchen, bath and other parts of the home. Transformational efforts and volume expansion are supporting growth of this segment. Net sales for the unit jumped 20% year over year to $858.2 million in the third quarter of 2022.
The spin-off is expected to be completed on Dec 14, as part of which, all outstanding shares of MasterBrand will be distributed to Fortune Brands’ stockholders. FBHS’ shareholders will receive one share of MasterBrand’s common stock for every share of the FBHS common stock held on Dec 2.
Fortune Brands Home & Security, Inc. Price
Fortune Brands Home & Security, Inc. price | Fortune Brands Home & Security, Inc. Quote
Upon completion of the separation, MasterBrand’s common stock is expected to begin trading on Dec 15 under the ticker symbol MBC. Fortune Brands will also change its name to Fortune Brands Innovations, Inc. and trade under the ticker symbol FBIN.
Zacks Rank & Key Picks
Fortune Brands carries a Zacks Rank #4 (Sell).
Some better-ranked stocks within the broader Retail-Wholesale sector are as follows:
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