Southern Indiana Business Report
Chicago-based Fortune Brands announced recently that its cabinet division will be spun-off into a new independent publicly-traded corporation within the next several months.
Fortune Brands’ board of directors authorized the company to pursue a tax-free spin-off of its cabinet business into a standalone publicly-traded company. Upon closing of the proposed separation, Fortune Brands shareholders would hold interests in both companies.
Nicholas Fink will continue to lead New Fortune Brands as chief executive officer (CEO) and Dave Banyard will continue to head the Cabinets Business as CEO following the separation.
Currently, under the MasterBrand Cabinets name, the Jasper, Ind.-based company had $2.9 billion in 2021 sales and 11,000 employees.
The company operates several highly recognizable names including Aristokraft Cabinetry, KitchenCraft, Schrock, Omega Cabinetry, Decora, Diamond, Mantra, and Kemper.
According to earning results for the first quarter of 2022 made public on April 28, cabinet sales increased 13 percent, driven by growth across stock and make-to-order. The operating margin before charges/gains was 9.5 percent.