Fortune Brands Announces New Operations-Focused Structure to Better Align Company with Growth and Productivity Priorities; makes changes ahead of previously announced separation into two world-class publicly traded companies
Cheri Phyfer named Group President; lead brand, innovation and channel resources across Fortune Brands
Ron Wilson named Director of Supply Chain; will lead Fortune Brands’ supply chain and manufacturing operations
DEERFIELD, Ill., September 6, 2022–(BUSINESS WIRE)–Fortune Brands Home & Security, Inc. (NYSE: FBHS, the “Company” or “Fortune Brands”), a leading home and security products company, today announced key changes in organization and management, enabling the Company to drive accelerated growth and productivity.
“The upcoming separation of our company represents more than just the creation of two world-class public companies; it also represents an opportunity for Fortune Brands to take the next steps in its evolution,” said Nicholas Fink, President and CEO of Fortune Brands. . “This organizational overhaul will allow us to seize the many opportunities we see to accelerate growth and margin improvement in the years to come. We are moving from a decentralized structure with separate businesses to a more aligned operating model that will prioritize core brand, innovation and channel activities.In addition, we are aligning all of our global supply chain resources under one supply chain manager to fully leverage scale and excellence in the execution of all of our activities.”
The company’s brand, innovation and channel organization will report to Cheri Phyfer in the newly created role of Group President, Fortune Brands. This change allows the Company to strengthen and leverage its best capabilities, as well as better align and accelerate key growth priorities. While serving as President of Water Innovations, Phyfer was integral to the success of the platform as a multi-brand portfolio while delivering exceptional sales growth and margin advancement. Additionally, Phyfer led the evolution of the Water Innovations segment into an innovative, digital water technology company.
“The performance of Water Innovations demonstrates that Fortune Brands has the experience and ability to scale companies into high-performing multi-brand portfolios. Under our new structure, we intend to maximize performance and productivity improvement capabilities across the Fortune Brands portfolio,” said Mouchard.
Additionally, the company is unifying its global supply chain and manufacturing operations under the leadership of Ron Wilson in the newly created position of Chief Supply Chain Officer, Fortune Brands. This shift will drive the scale needed for critical strategic sourcing and planning initiatives, lean manufacturing, and increased efficiency to help unlock the full potential of Fortune Brands Advantage. Wilson is an experienced supply chain and operations manager who, prior to this role, led Water Innovations’ global supply chain.
“I am confident that this new structure will make Fortune Brands a more agile and efficient organization and open up opportunities for growth and shareholder value. I am excited to continue to lead Fortune Brands into its next phase of above-market performance. More than ever before, we will truly be able to harness the power of our scale and execution excellence across all of our brands,” Fink said. assumed these key leadership roles.”
Marty Thomas, formerly Senior Vice President, Operations and Supply Chain Strategy at Fortune Brands, will move into a key advisory role and, as part of a planned succession, will retire at the end of the year. Brett Finley, former president of the Outdoors & Security segment, will also move into a key advisory role until the end of the year, when he will leave the organization to pursue other opportunities. The Society is grateful to Thomas and Finley for their years of contribution.
In April 2022, Fortune Brands announced that it would pursue a separation into two world-class companies via a tax-free spin-off of its Cabinets business. As the separation progresses ahead of schedule, the Company is actively taking steps to prepare for sustained and accelerated value creation.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), regarding general business strategies, product offerings, expansion into new geographic markets, market potential, expected future financial performance, the potential of our brands and other matters Statements preceded, followed by or otherwise including the words “believes”, “positioned”, “expects”, “estimates”, “plans”, “looks”, “prospects”, “has ‘intention’ and similar or future expressions or conditional verbs such as ‘will’, ‘should’, ‘would’, ‘may’ and ‘could’ are generally forward-looking in nature and not historical fact. Where in a statement prospective, we express an expectation or a conviction as to future results or events, this expectation or belief is based on the current plans and expectations of our management. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual results and results to differ materially from those indicated in these statements, including, but without limitation, the expected benefits and costs. the planned spin-off operation; the tax-free nature of the split; the expected timing of completion of the Split Transaction and the terms of the transaction; general commercial and economic conditions; our dependence on North American repair and renovation and new home construction activity levels; our dependence on key customers and suppliers; our ability to maintain our strong brands and develop innovative products while maintaining our competitive positions; our ability to improve organizational productivity and global supply chain efficiency; our ability to obtain raw materials and finished goods on a timely and cost-effective basis; the impact of sustained inflation, including global availability of raw materials and energy and price volatility; the impact of tariffs and trade-related risks with uncertain trading environments or changes in government and industry regulatory standards; our ability to attract and retain qualified personnel and other labor constraints; uncertainties related to the impact of COVID-19 on the Company’s business and results; our ability to realize the anticipated benefits of our strategic initiatives; our ability to successfully execute our acquisition strategy and integrate businesses that we own and may acquire; and other factors discussed in our securities filings, including in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission. The forward-looking statements included in this release are made as of the date hereof, and except as required by law, we undertake no obligation to update, modify or clarify the forward-looking statements to reflect events, new information or circumstances arising after the date of this publication.
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, Illinois, is a Fortune 500 company, part of the S&P 500 Index and a leader in the home products industry. With trusted brands and market-leading positions in each of its three operating segments, Water Innovations, Outdoors & Security, and Cabinets, Fortune Brands’ 28,000 associates work toward realizing home dreams. .
The company’s growing portfolio of complementary businesses and innovative brands includes Moen and the House of Rohl within Water Innovations; outdoor living and safety products from Therma-Tru, LARSON, Fiberon, Master Lock and SentrySafe; and the wide range of MasterBrand Cabinets offerings from MANTRA, Diamond, Omega and many more. Visit www.FBHS.com to learn more about FBHS, its brands and how the Company is accelerating its environmental, social and governance (ESG) commitments.
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