(Reuters) – Harbinger Capital Partners is conducting a strategic review of its home appliance business Salton with an eye towards a possible sale or a refinancing of the company’s debt, the New York Post said citing sources.
The U.S. hedge fund led by Phil Falcone is the controlling stakeholder of Salton, which sells appliances under the George Foreman and Toastmaster brands.
The company has hired Lazard for what two people described to the paper as a sale process. A source also told the paper that Salton may fetch $500 million.
Among the names mentioned as possible suitors are Jarden Corp (JAH.N), China’s Haier and Tektronix, which makes Dirt Devil vacuum cleaners, according to the paper.
However, a person close to the company told the paper the process is more of an attempt to refinance $300 million of Salton’s debt in preparation to buy more consumer companies.
“Harbinger is a strong believer in Salton’s business prospects and is not actively marketing the company. We are exploring potential financial engineering with Salton given its improved performance,” a company spokesman told the paper.
Harbinger Capital, which manages roughly $6 billion, and Jarden could not be immediately reached for comment by Reuters.
(Reporting by Chakradhar Adusumilli in Bangalore, Editing by Lin Noueihed)