Spectrum Brands, a consumer-products company controlled by hedgie Phil Falcone, is in talks to buy a unit of Stanley Black & Decker that makes shower heads, door fixtures and locks, sources told The Post.
The unit, which makes Pfister faucets and Weiser locks, is likely to fetch a price of $1 billion, or more.
Spectrum, which owns the George Foreman grill and Rayovac batteries, became the lead bidder after private-equity bidder Apollo Global Management backed out of discussions, a person close to the talks told The Post yesterday.
A spokesman for Apollo declined to comment.
Stanley Black & Decker, based in New Britain, Conn., put the unit on the block earlier this year.
Falcone, founder of hedge fund Harbinger Capital Management, controls a 57 percent stake of Spectrum through his publicly-traded holding company, Harbinger Group.
Falcone rose to hedge-fund stardom betting against toxic subprime mortgages in 2008. But he has suffered numerous setbacks since, including the bankruptcy of wireless start-up LightSquared, and an embarrassing lawsuit by regulators over an allegedly improper loan from his fund.
Spectrum, valued at roughly $2.1 billion, has been a saving grace for Falcone, a self-described hockey fanatic. The Madison, Wis., company recently announced plans to use its excess cash to start paying a quarterly dividend of 25 cents per share — plus a one-time special dividend of $1 a share.
That translated into a $30 million one-time payment to Falcone’s Harbinger.
The dividend payouts have also raised questions about Spectrum’s ability to simultaneously make an acquisition like that of the Stanley Black & Decker unit.
A spokesman for Spectrum didn’t respond to a request for comment.
Spectrum closed yesterday down 2.7 percent to $40.34; Harbinger closed up 5.3 percent to $9.10.
Shares of Stanley Black & Decker closed up 2.5 percent to $78.25.