GE Capital, Corporate Finance, an operating unit of General Electric Company (GE - Analyst Report), recently served as an administrative agent for a senior secured credit facility worth $75 million for consumer goods manufacturer JAKKS Pacific, Inc. (JAKK - Analyst Report). The debt financing will be utilized by JAKKS for its working capital requirements to fuel further growth.
Based in Malibu, CA, JAKKS develops and markets toys under various owned, licensed, or non-licensed trademarks and brands. These include diverse products such as action figures, vehicles, playsets, dolls, accessories, electronic products, construction toys, infant and pre-school toys, novelty toys, seasonal and outdoor products, indoor and outdoor kids’ furniture, and Halloween and everyday costume play.
Since its inception in 1995, this toy manufacturer has emerged as one of the top five U.S. players in the toys and leisure products sector through innovative products, unique licensing agreements and strategic acquisitions. The company aims to expand the seasonality of it products by continuously adding new retail outlets and leveraging its product development and merchandising expertise on products that command a wider brand recall.
JAKKS will primarily use the credit facility to expand its business. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain, department, office supply, club, and toy specialty stores; and drug and grocery store chains and wholesalers. Moving forward, JAKKS expects to benefit from General Electric’s industry insight to consolidate its business.
General Electric 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, 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. It 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 #4 (Sell). Other companies in the industry that are worth mentioning include 3M Company (MMM - Analyst Report) and CLARCOR Inc. (CLC - Snapshot Report), both holding a Zacks Rank #2 (Buy).