Fortune Brands, Inc. (NYSE:FO) announced today a definitive agreement to sell its Acushnet Company golf business to a group led by Fila Korea Ltd, and Mirae Asset Private Equity, the largest private equity firm in Korea, for $1.225 billion in cash. Fortune estimates it will realize a net profit of $1.1 billion after taxes and selling expenses are accounted for. Acushnet is the most profitable golf equipment company in the world. Titleist is the #1 ball in golf and a leader in high-performance golf clubs. FootJoy is the #1 shoe and glove in golf and a leader in performance outerwear. Net sales exceeded $1.2 billion in 2010, with nearly half of revenues generated in markets outside of the United States. Operating income before charges was $80 million in 2010. Bruce Carbonari, chairman and chief executive officer of Fortune Brands said, "This transaction is a very important milestone as we execute our proposed plan to separate our three strong businesses for the purpose of maximizing long-term value for our shareholders. Not surprisingly, the sale process for Acushnet generated broad interest from a range of prospective buyers and resulted in this agreement that reflects the superior performance and prospects of the business. The proceeds from this sale will strengthen Fortune Brands' balance sheet and support strong capital structures for both Beam and Fortune Brands Home & Security as they look to the prospect of competing as independent companies later this year." Fortune Brands has a potential upside of 6.3% based on a current price of $64.89 and an average consensus analyst price target of $69.
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Bankers’ Association, which has the supervisory role of setting the
influential Libor rates, announced that it would be willing to give up