Diversified consumer and security products maker Fortune Brands, Inc. ( FO ) on Friday said it would sell its Acushnet Company golf business to Fila Korea Ltd. for $1.23 billion.
Acushnet includes the popular Titleist and FootJoy golf brands. Korean private equity firm Mirae Asset Private Equity is also involved with the deal in combination with Fila.
FO said the sale would generate net proceeds of $1.1 billion after taxes and expenses related to the deal.
Fortune Brands shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of Fortune Brands ( FO ) have a 1.17% dividend yield, based on last night's closing stock price of $64.89. The stock has technical support in the $60 price area. If the shares can firm up, we see overhead resistance around the $70 price level.
Fortune Brands, Inc. ( FO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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