UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
June 3, 1998 (June 3, 1998)
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Date of Report (Date of earliest event reported)
FORTUNE BRANDS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-9076 13-3295276
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
l700 East Putnam Avenue, Old Greenwich, Connecticut 06870-0811
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 698-5000
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
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Registrant's press release dated June 3, 1998 is filed herewith as
Exhibit 20 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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20. Press release of Registrant dated June 3, 1998.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Current Report to be signed on its
behalf by the undersigned thereunto duly authorized.
FORTUNE BRANDS, INC.
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(Registrant)
By Charles H. McGill
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Charles H. McGill
Senior Vice President,
Corporate Development
Date: June 3, 1998
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EXHIBIT INDEX
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20. Press release of Registrant dated
June 3, 1998.
Exhibit 20
[Corporate Logo] NEWS RELEASE
NEWS RELEASE
Fortune Brands, Inc., 1700 East Putnam Avenue, Old Greenwich, CT 06870
NEWS RELEASE
Contact:
Anthony J. Diaz
(203) 698-5553
FORTUNE BRANDS ANNOUNCES AGREEMENT
TO ACQUIRE SCHROCK CABINET COMPANY --
NEARLY DOUBLING CABINET SALES
Old Greenwich, CT, June 3, 1998 -- Fortune Brands, Inc. (NYSE-FO), the consumer
products company, announced today that its home products business has entered
into a definitive agreement to purchase the assets of Schrock Cabinet Company, a
division of White Consolidated Industries, Inc., which is a wholly-owned
subsidiary of AB Electrolux of Sweden.
With 1997 sales of $183 million, Schrock is a leader in the growing
U.S. kitchen and bath cabinets category. The purchase price is $107.5 million in
cash.
"Schrock nearly doubles our sales in the kitchen and bath cabinets
category, where our Aristokraft unit has been achieving excellent growth," noted
Fortune Brands' Chairman and Chief Executive Officer Thomas C. Hays. "Combined,
the operations had $430 million in 1997 sales, creating a strong number 2 market
presence with broad U.S. coverage and excellent positions in all cabinet
distribution channels, including home centers, where the Moen faucet and Master
Lock brands already have a strong position. We expect to achieve substantial
growth and cost synergies with this acquisition and to add to E.P.S. right from
the start."
"We have a strategy that is sharply focused on revenue growth, cost
initiatives and asset management," Hays said, "supplemented by high-return,
add-on acquisitions. This acquisition marks the seventh we have announced or
completed since the beginning of last year. These brands add annualized sales of
approximately $430 million and have been purchased at a price of approximately
65 cents per dollar of sales. The integration of the six previously completed
acquisitions is right on track, and substantial value is being created."
"Fortune Brands is performing very well," Hays added. "In the first
quarter, sales were up 9%, contribution was up 11%, and E.P.S. was up 15%
compared with last year's pro forma. Every brand group reported strong gains in
the first quarter, and our operations are continuing to perform well in the
second quarter. For the full year, we expect to achieve E.P.S. growth in the
range of 13-15%, assuming a satisfactory economic and pricing environment and no
further erosion in exchange rates. That's also our long-term growth target.
About 80% of sales come from brands that are number 1 or number 2 in their
markets. 14 brands each generated about $100 million in sales or more in 1997,
and we have tremendous financial strength."
The Schrock acquisition, which is subject to a number of customary
closing conditions, is expected to be completed by June 12. Schrock is
headquartered in Hilliard, Ohio.
* * * *
Fortune Brands, Inc. is a consumer products company with headquarters
in Old Greenwich, Connecticut. Its operating companies have premier brands and
leading market positions in home and office products, golf equipment and
distilled spirits. Home and office brands include Moen faucets, Master locks and
Aristokraft cabinets sold by units of MasterBrand Industries and Day-Timer and
Swingline sold by units of ACCO World Corporation. Acushnet Company's golf
brands include Titleist, Cobra and FootJoy. Major distilled spirits brands sold
by units of Jim Beam Brands Worldwide, Inc. include Jim Beam and Knob Creek
Bourbon, DeKuyper cordials and Whyte & Mackay Scotch.
* * *
This press release contains statements relating to future results,
which are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Actual results may differ materially
from those projected as a result of certain risks and uncertainties, including
but not limited to changes in general economic conditions, foreign exchange rate
fluctuations, competitive product and pricing pressures, the impact of excise
tax increases with respect to distilled spirits, regulatory developments, the
uncertainties of litigation, the impact of weather, particularly on the home
products and golf brand groups, expenses and disruptions related to shifts in
manufacturing to different locations and sources, delays in the integration of
recent acquisitions, as well as other risks and uncertainties detailed from time
to time in the Company's Securities and Exchange Commission filings.
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