16572 Thu, 07/16/2009 - 3:25pm
NEW YORK–Salton Inc., the entity created by the merger of Salton and Applica last year, is not for sale, according to a statement from Harbinger Capital Partners, the company’s owner.
Harbinger issued the statement yesterday in response to press reports that said the company is on the block. The statement said that “both Salton and Harbinger remain committed to our long-term partnership and to the strategy of positioning the company as a leading marketer and distributor of a broad range of high-quality consumer products.”
The statement added that, with the integration of Salton and Applica complete, “the combined company is exploring various strategies to optimize its capital structure and capitalize on organic and external growth opportunities.” David M. Maura, chairman of Salton and vice president and director of investments of Harbinger, added that the company’s operating income has grown from $5 million to $40 million in the merged company’s first year of operation.
Terry Polistina, Salton’s chief executive officer, said the company is using its relationship to Harbinger to seek “synergistic acquisitions” to help build the company’s value. Polistina said Salton generated more than $65 million in cash flow over the past five months, which was used to pay down debt. He added that Salton expects to generate close to $100 million in free cash flow this year, which will be used to pay down more debt to prepare for other mergers and acquisitions.