Harbinger: Salton Not For Sale
The hedge fund owner disputed reports that the appliance marketer would sell, claiming that Salton is preparing for acquisitions.
June 18, 2009
Harbinger Capital would like to make clear that Salton Inc. is not for sale.
The New York-based hedge fund responded “to questions we've received regarding the potential sale” of Salton by pronouncing that the home appliance business is not on the block.
On Wednesday, a New York Post article said Harbinger was likely to sell Salton, and claimed it could receive up to $500 million. The hedge fund founded by Phil Falcone said the Miramar, Florida-based maker of the George Foreman Grill is looking for new acquisitions.
Salton’s free cash flow increased from $5 million when it was acquired by Harbinger to $40 million. In a statement, chief executive Terry Polistina said the small home appliance maker expects to $100 million in revenue this year and noted that the cash “will be used to deleverage the balance sheet in preparation for our next acquisition.”
In July 2008, Salton withdrew from an agreement it signed with Spectrum Brands Inc. two months earlier to buy United Pet Group, a wholesaler of pet supplies, from Spectrum Brands Inc, for $915 million. Harbinger Capital was to provided financing for the nixed deal.
In December 2007, Salton acquired APN Holding Company, the parent of Applica Incorporated.
Calls placed to Harbinger Capital and Salton were not returned by press time.
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