Fortune Brands Inc. (FO), a leading consumer brands company, recently sold its Cobra golf brand, including its related inventory, intellectual property, and endorsement contracts to Puma AG, a German multinational company that produces high-end athletic shoes, lifestyle footwear and other sportswear.
With the sale, Fortune Brands intends to concentrate its golf business on its leading brands – Titleist and FootJoy. While Titleist is the numero uno ball in golf, FootJoy is the leading brand in golf shoes and gloves. Titleist, the flagship golf club brand of Fortune Brands, generated the lion’s share of sales in the golf club category and registered strong sales in 2009, when the overall golf club market declined due to the global recession.
The acquisition of the Cobra brand would enable Puma to provide a full range of products in the golf category, including golf equipment, footwear, apparel and accessories. Fortune Brands will continue to provide production, distribution, field sales and customer service to Puma during the transition period until the completion of the transaction, which is subject to customary closing conditions and regulatory approvals.
Although the financial terms were not disclosed, Fortune Brands anticipates the sale to be dilutive by approximately two cents to 2010 earnings per share before a one-time gain on sale of approximately five cents. The transaction is expected to be completed by the second quarter of fiscal 2010.

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