Pinnacle

Fortune Brands Breakup Would Put Premium Spirits Brands In Play

Filed under: Spirits

Activist investor Bill Ackman has been given a four-week deadline to propose changes to the board of Fortune Brands, the company that is parent to Jim Beam, Maker's Mark, Laphroaig and Courvosier, as well as Pinnacle and Scotty Cameron golf equipment, which could lead to the break-up of the conglomerate.

Since disclosing his holding last month, Mr Ackman, founder of Pershing Square Capital Management, has kept quiet about his plans. However, his record suggests he wants Fortune's board to explore breaking up its stable of consumer brands starting with its spirits business, which includes Jim Beam whiskey and that distillery's small-batch Bourbon brands, and Courvoisier cognac.

Ackman holds an 11% stake in the company, which has always been viewed as an odd throw-back type conglomerate of disassociated businesses. Besides the spirits brands, and golf equipment, Fortune also operates home and home-security businesses and brands such as Moen, Masterlock, as well as kitchen cabinet brands.

In the past month, Ackman has held talks with Fortune's management about its corporate structure, shareholder value, etc. Ackman has four weeks to file a slate of his own candidates for the company's board to be voted on at the general meeting in April.

The most obvious buyers of FB's liquor businesses are drinks giants Diageo and Pernod Ricard of France. Gruppo Campari, which owns Wild Turkey and other brands, also could be interested in acquiring some of the brands. Bacardi would also be a factor in bidding. It is possible that Fortune Brands spirits brands would go to different companies, each looking for its own strategic additions.

Fortune's other brands include Cruzan Rum, Canadian Club, Effen Vodka, Ardmore single-malt, Harvey's Bristol Cream Sherry, Teacher's Scotch Whiskey and DeKuyper spirits.

Fortune Brands shares are trading around $60.00, up more than 10% since October 7, and up from its 52-week low of $37.05

Tags: alcohol, Bill Ackman, bourbon, Courvosier, Fortune Brands, Jim Beam, Knob Creek, Laphroaig, Makers Mark, Masterlock, Moen, Pinnacle, scotty cameron, spirits, whiskey, whisky

Philly Pinacle Project

by Nicole Weston (RSS feed) —

Filed under: Luxury Travel & Hotels

Philadelphia has plans for a new, waterfront casino complex, but has not yet decided on a design. Among the submissions for the final design, the standout is Pinnacle Entertainment's huge 260,000-sq foot entertainment center, which would be situated along the Delaware River. Pinnacle is the lead in the project not only from an aesthetic perspective, but because it caters to non-gamblers as well as those who like to play the slots. Though it has the same 3,000 slot machines and 3,000 parking spaces as the other submissions, it offers and unusually ambitious and appealing design, with movie theaters, restaurants, concert venues and either boating or ice skating, depending on the season. The casino will also be set back further from the surrounding neighborhood, disguised with trees and parks. It has an estimated at a final price of $300-$400 million, but the price tag will not be what sways the city for or against a particular casino: it's the extra amenities, which Pinnacle's project delivers in spades.