GE Boosts KeHE Distributors' Liquidity

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GE Capital, Corporate Finance, an operating unit of General Electric Company (GE), recently served as the co-lateral agent for an asset-based credit facility worth $300 million for KeHE Distributors LLC. The debt financing will be utilized by KeHE Distributors for its working capital requirements to fuel further growth.

Based in Romeoville, Ill, KeHE Distributors is one of the leading distributors of food products in North America. KeHE Distributors provides an assorted collection of specialty and natural products to retailers of all types and sizes backed by its business tie-ups with over 3500 manufacturers, importers and other product supply partners.

KeHE Distributors operates 12 warehouse facilities, including 9 in the U.S. and 3 in Canada. This privately-held food product supplier ferries natural and organic, specialty, gourmet, and multi-cultural products to food stores, grocery stores and other specialty product retailers across multiple channels in Canada, the U.S., Mexico, the Caribbean, and Central and South America.

KeHE Distributors will primarily use the credit facility to expand its business. Incidentally, its Canadian unit Tree of Life Canada acquired Northbud Distributors, a food distributor with more than 40 years of experience, to extend its footprint in the country. Moving forward, KeHE Distributors further expect to benefit from the industry insight of General Electric to consolidate its business.  

General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products, the company serves over 100 million customers worldwide.

Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. GE Capital, Corporate Finance provides asset-based, cash flow and structured loans to support the working capital requirements of mid-size and large firms. The company focuses on key sectors such as aerospace and defense; automotive and transportation; chemicals and plastics; construction and building products, corporate aircraft; energy; food and beverage; manufacturing; marine; metals and mining; paper, packaging and forest products; retail; and technology and electronics.

General Electric currently has a Zacks Rank #3 (Hold). Other companies in the industry that are worth mentioning include Federal Signal Corp. (FSS) and ITT Corporation (ITT), both having a Zacks Rank #2 (Buy), and Hutchison Whampoa Ltd (HUWHY), having  a Zacks Rank #1 (Strong Buy).

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Read the Full Research Report on GE

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Read the Full Research Report on FSS

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