Fortune Brands Home & Security, Inc. (NYSE:FBHS) announced that it intends to separate into two publicly traded companies. Fortune Brands' Board of Directors authorized the Company to pursue a tax-free spin-off of its Cabinets business into a standalone publicly traded company. Upon closing of the proposed separation, shareholders would hold interests in two leading companies.

The separation represents the Company's next chapter of outstanding value creation. The result will be two well-positioned, leading companies with exceptional potential. New Fortune Brands will bring brand and innovation excellence to super-charged categories, leveraging secular growth themes of water management, outdoor living, material conversion and science, and connected products.

Additionally, shareholders would hold interests in North America's leading cabinets company delivering top-tier performance through operational excellence. A potential separation is subject to further Board approval and other customary conditions and is expected to take approximately 12 months to complete. 'We are excited to be taking the next step in our value creation journey for stakeholders.

There is much work to be done, but together with the rest of our Board, I believe that this separation will enable each company to recognize its full potential and unlock even greater long-term stakeholder value,' said Nicholas Fink, chief executive officer, Fortune Brands.