Spectrum Brands Holdings Inc., the consumer-products company controlled by Philip Falcone, is in exclusive talks to buy the home unit of Stanley Black & Decker Inc. for at least $1 billion, said a person with knowledge of the matter.
The deal may be announced Oct. 1, said the person, who asked not to be identified as the discussions are private. Representatives at Stanley and Spectrum didn’t immediately return calls seeking comment. Reuters reported earlier that Spectrum had taken the lead in the bidding.
Stanley disclosed in July that Goldman Sachs Group Inc. was hired to explore a sale of the so-called hardware and home-improvement unit. The operations were part of Black & Decker Corp. before its 2010 merger with Stanley Works. The division makes Kwikset door locks and Pfister bathroom faucets.
Harbinger Group Inc., the New York Stock Exchange-listed vehicle owned by Falcone’s Harbinger Capital Partners hedge-fund firm, controls Spectrum.
The acquisition would add to Madison, Wisconsin-based Spectrum’s collection of consumer brands, including Rayovac batteries, Remington razors, and George Foreman electric grills. Spectrum had $3.19 billion in fiscal 2011 revenue, while the Stanley division had $940 million in sales last year.
Spectrum fell 2.8 percent to $40.34 at the close in New York. Stanley rose 2.5 percent to $78.25.