Sears Hometown and Outlet Stores, Inc. is exploring a sale of its home improvement business following interest from potential suitors such as private equity firms, people familiar with the matter said. Transform Holdco LLC could raise at least $1 billion by divesting the home improvement business, the sources said. Sears has tapped investment bankers at Guggenheim Securities LLC to explore selling the business, the sources said. Transformco could also sell a stake in Sears Home Services and retain some ownership of the business, one of the sources said, cautioning that a deal may not come together at all. The sources asked not to be identified because the matter is confidential. Transformco and Guggenheim declined to comment.