Harbinger Capital Partners Proposes to Exchange Shares of Spectrum Brands for Harbinger Group Common Stock
Harbinger Reaffirms Commitment to Spectrum Brands
NEW YORK, Aug. 19 /PRNewswire/ -- Harbinger Capital Partners LLC (Harbinger) announced today that it has proposed a transaction to Harbinger Group Inc. (NYSE: HRG) to contribute shares of common stock of Spectrum Brands Holdings, Inc. (NYSE: SPB) in exchange for newly issued shares of HRG common stock of equivalent value.
Harbinger is offering this stock-for-stock transaction as it views HRG, a publicly-traded holding company controlled by Harbinger, as an efficient, long-term capital market vehicle through which to exercise majority ownership of SPB and to build significant shareholder value. The Harbinger proposal contemplates that, upon consummation of the transaction, HRG will hold at least a majority of the SPB common stock outstanding.
Harbinger's strategy is to continue to hold majority ownership of SPB through HRG as a long-term investment. Following the consummation of the proposed transaction, SPB will remain a stand-alone publicly traded company, and the proposed transaction will have no impact on SPB's credit profile or financial position.
Philip Falcone, CEO of Harbinger Capital Partners, said: "Spectrum Brands is a core investment for us and we remain committed to it. Spectrum has a great consumer brand portfolio and is strongly positioned to build shareholder value through its objectives for free cash flow generation, growth in earnings and EBITDA and significant debt reduction."
About Harbinger Capital Partners LLC: Harbinger Capital Partners LLC (Harbinger) is a leading private investment fund based in New York with $9 billion in assets under management. The firm was founded in 2001 and employs a fundamental approach to deep value and distressed credit investing. Harbinger is led by Philip A. Falcone, its Chief Executive Officer, who has more than 20 years of investment experience across an array of market cycles.
About Harbinger Group Inc.: Harbinger Group Inc. (HRG) is a holding company with approximately $144.8 million in consolidated cash, cash equivalents and investments as of June 30, 2010. HRG's principal focus is to identify and evaluate business combinations or acquisitions of businesses. A majority of HRG's outstanding common stock is owned by investment funds affiliated with Harbinger Capital Partners LLC. For more information about HRG, please see its website at http://www.harbingergroupinc.com.
About Spectrum Brands Holdings, Inc.: Spectrum Brands Holdings, Inc. (SPB) is a global consumer products company and a leading supplier of batteries, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn & garden and home pest control products, personal insect repellents and portable lighting. Helping to meet the needs of consumers worldwide, included in its portfolio of widely trusted brands are Rayovac®, Remington®, Varta®, George Foreman®, Black&Decker Home®, Toastmaster®, Tetra®, Marineland®, Nature's Miracle®, Dingo®, 8-in-1®, Littermaid®, Spectracide®, Cutter®, Repel®, and HotShot®. SPB's products are sold by the world's top 25 retailers and are available in more than one million stores in more than 120 countries around the world. Spectrum Brands Holdings' businesses generate annual revenue from continuing operations in excess of $3 billion. A majority of SPB's outstanding common stock is owned by investment funds affiliated with Harbinger Capital Partners LLC. For more information about SPB, please see its website at http://www.spectrumbrands.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks, and uncertainties that could cause actual results, events and developments to differ materially from those set forth in or implied by forward-looking statements. Forward-looking statements, which are based upon certain assumptions and describe future plans, strategies and expectations of Harbinger Group Inc. (HRG) and/or Spectrum Brands Holdings, Inc. (SPB), are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans," "seeks," "estimates," "projects," "may" or similar expressions. Factors that could cause actual results, events and developments to differ include, without limitation, the risk that we may not be successful in identifying any suitable future acquisition opportunities and those factors listed under the caption "Risk Factors" in the most recently filed Annual Reports on Form 10-K for each of HRG and SPB, as well as the most recently filed Quarterly Reports on Form 10-Q for each of HRG and SPB. All forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. None of Harbinger, HRG or SPB undertakes any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operation results.
SOURCE Harbinger Capital Partners LLC
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