Salton ponders sale to hedge fund
Tuesday, October 24, 2006 : PermalinkChicago Tribune – Financially stressed Salton Inc., the Lake Forest-based maker of the George Foreman-brand grill and other small appliances, disclosed Monday that its directors intend to “explorestrategic alternatives,” including a possible sale or merger of the company.
In publicly putting itself on the block, Salton cited “recent expressions of interest” from other entities regarding possible acquisitions.
Last week, an acquisition-minded New York hedge fund that controls a 15.5 percent voting stake in Salton signaled its interest in buying the company outright.
On Thursday, Harbinger Capital Partners agreed to pay about $87.6 million to acquire the 60 percent it doesn’t already own of Applica Inc. Applica, based in Miramar, Fla., is a Salton rival in thehousehold-appliance industry.
That same day, Harbinger wrote a letter to Salton directors seeking to enter into buyout talks, under which the hedge fund would merge Applica and Salton. Harbinger has one representative on Salton’sseven-member board of directors.