Private equity-backed Industrial Magnetics Inc. has acquired Prater-Sterling Inc.

Bolingbrook, Illinois-based Prater Sterling develops and manufactures particle processing equipment and control systems used in the food and beverage, chemical and mineral, industrial, agricultural and pharmaceutical industries.

Industrial Magnetics, headquartered in Boyne City, Michigan, provides permanent magnets and electromagnets for work-holding, lifting, conveying and magnetic separation, often used for custom fabrication. The company is backed by River Associates Investments LLC, a Chattanooga, Tennessee-based private equity firm that focuses on lower middle market companies.

Abacus Finance Group LLC served as administrative agent and sole lead arranger for the $32.5 million senior secured credit facilities to support the acquisitions.

Dealmakers are expecting manufacturing M&A to continue to surge. Other recent manufacturing deals include Agco's (NYSE: AGCO) May deal for Intersystems Holdings, which makes material handling products for grain manufacturers, and Hi-Tech Holdings LLC's purchase of a majority interest in GCM Medical, a provider of contract manufacturing services to the medical equipment market. 


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