GE to Provide Financing to Castik Capital, Shares Down

GE Capital, a division of General Electric Company (GE), along with other companies was recently selected to provide 113 million pounds (equivalent to $170.6 million as of Jan 8) of senior debt facilities to private equity firm Castik Capital for the acquisition of Waterlogic. An additional debt facility has also been put in place to support the future acquisitions of Castik Capital. Shares of General Electric decreased marginally on Jan 9, following the announcement as overall equity market fell on global cues.

Waterlogic is a leading vertically integrated global designer, manufacturer, distributor and service provider of drinking water purification and dispensing system. The company has an impressive track record of both organic and acquisitive growth. The debt facility will facilitate the operating and strategic initiatives of Castik Capital to fuel its growth strategy.

GE Capital provides an extensive array of business financing solutions, ranging from small equipment leases to large commercial loans. It combines industry knowledge and structuring expertise to meet the financing needs of diverse companies with customized products in order to support their growth trajectory.

General Electric, the parent company, is one of the largest and 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. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital.

General Electric currently has a Zacks Rank #4 (Sell). Other stocks that look promising and are worth a look include Compass Diversified Holdings (CODI) Erickson Incorporated (EAC) and General Dynamics Corporation (GD), all carrying a Zacks Rank #2 (Buy).