Beam Suntory Inc. – ‘8-K’ for 6/3/98 – EX-20

As of:  Thursday, 6/4/98   ·   For:  6/3/98   ·   Accession #:  893838-98-97   ·   File #:  1-09076

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         3     10K 
 2: EX-20       Other Document or Statement to Security Holders        2±     9K 

EX-20   —   Other Document or Statement to Security Holders

                                                                  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.            
 # # #

Dates Referenced Herein

This ‘8-K’ Filing		Date		Other Filings
Filed on:		6/4/98		None on these Dates
For Period End:		6/3/98
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