DNS Capital has acquired IMI Holding Corp., the parent company of Industrial Magnetics, Prater Industries, and Sterling Controls, from River Associates.
IMI products are used in industrial production lines to remove metal; sort and size ingredients and particles; and manage product purity and quality control. The company’s customers are active in the food processing, industrial MRO, conveying, bulk material and aggregate handling and recycling sectors. River Associates first invested in IMI in February 2012. IMI is headquartered in northern Michigan in Boyne City (www.magnetics.com) (www.praterindustries.com) (www.sterlingcontrols.com).
DNS Capital is a family office that manages the investment activities of Gigi Pritzker, her husband Michael Pucker, and their immediate family. The firm makes control and minority investments of $25 million to $100 million in companies with EBITDAs from $10 million to $50 million. DNS prefers companies that are active in basic industries such as industrials, business services, consumer, and real estate. The firm is headquartered in Chicago (www.dnscap.com).
“In the IMI team, we found true partners who we can be aligned with on a long-term basis,” said Michael Pucker, President and CEO of DNS Capital. “CEO Bud Shear and his team are first-class operators and we look forward to working with them to build upon the company’s long and distinguished history.”
River Associates, the seller of IMI, invests in companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million. Sectors of interest include niche manufacturing, high margin distribution and industrial services. The firm was founded in 1989 and to date has completed 75 investments, including platform and add-on acquisitions. River Associates is based in Chattanooga, TN (www.riverassociatesllc.com).
The investment banking group of Baird (www.rwbaird.com) was the financial adviser to IMI and River Associates and Miller & Martin (www.millermartin.com) provided legal counsel.
© 2016 Private Equity Professional • 2-16-16
