Fortune Brands Inc plans to separate the company into three, the maker of Jim Beam bourbon, Titleist golf balls and Moen faucets said on Wednesday.

Under a plan approved by the company's board, Fortune plans to spin off its home and security unit to shareholders in a tax-free transaction and either sell or spin off its golf unit.

Fortune then plans to remain a publicly traded maker of spirits, with brands including Sauza tequila and Maker's Mark bourbon.

The company expects to finish developing its plans -- including the structure, timing and other related matters for each business -- within the next several months.

The plan is the result of a strategic review process conducted by management and the board over the past four years, Chief Executive Officer Bruce Carbonari said in a statement.

While the breadth and balance of our portfolio have served shareholders very well, we see the potential for even greater value by separating our businesses into focused companies, Carbonari said.

Carbonari said each of the three businesses emerged from the economic downturn stronger than anticipated.

He also said Fortune considered the interests of all its shareholders, from long-term owners to its largest current owner, Pershing Square Capital Management, which revealed an 11 percent stake on October 8.

Pershing Square's head, William Ackman, is known as an activist investor who often pushes for changes at companies. Carbonari said Fortune found much strategic common ground with Ackman.

Deerfield, Illinois-based Fortune is the largest U.S.-based spirits company and the fourth-largest premium spirits business in the world. Its rivals include Diageo , Pernod Ricard SA
and privately held Bacardi.

Fortune shares, which closed on Tuesday at $61.15 on the New York Stock Exchange, have gained 17.6 percent in the past two months since Ackman's investment.

(Reporting by Martinne Geller; Editing by Lisa Von Ahn and Derek Caney)