Pier 1 Inc. will be divided into three businesses.

Under the plan, which has been approved by the company’s board of directors, a shareholder owning 100 Pier 1 shares will receive, tax-free, 100 shares of Pier 1 Imports, 50 shares of Sunbelt Nursery Group and 12 shares of CMEI Inc., a diversified real estate company. The company said that, while the distribution is subject to certain regulatory approvals, it expects the share distribution to be completed by the end of the year.