New York-based specialty finance group Abacus Finance has provided $16 million in senior cash-flow financing to support the leveraged buyout of Industrial Magnetics, Inc by Chattanooga-based River Associates Investments. Headquartered in Boyne City, Michigan, IMI provides permanent magnets and electromagnets for lifting, fixturing, conveying and magnetic separation.
Abacus Finance Group, LLC (Abacus), a New York-based specialty finance company, announced today that it served as Administrative Agent and Sole Lead Arranger for $16 million in senior cash-flow financing to support the leveraged buyout of Industrial Magnetics, Inc. (IMI) by River Associates Investments LLC (River Associates). Abacus focuses exclusively on providing cash-flow financing for private equity-sponsored, lower-middle market companies. Legal counsel to Abacus was provided by Goulston & Storrs, LLP.
Headquartered in Boyne City, Michigan, IMI is an industry leader in providing permanent magnets and electromagnets for work-holding, lifting, fixturing, conveying and magnetic separation. River Associates Investments LLC, based in Chattanooga, Tennessee, is a private equity partner for management teams of lower middle market companies in buyouts, divestitures and recapitalizations.
“Abacus was a great fit for the Industrial Magnetics transaction. They were willing to work hand-in-hand with our team at River Associates and the company to fund this transaction on an expedited basis,” said Patten Pettway, Partner at River Associates. “The Abacus team provided a strong financing solution and followed that up with a smooth execution. We highly recommend Abacus Finance as a financing partner.”
“We are delighted to begin a relationship with River Associates and provide support to Industrial Magnetics – an industry leader which has been in business for over a half a century. Industrial Magnetics has a strong management team and a consistent track record of generating strong cash flow,” said Tim Clifford, President and CEO of Abacus. “They were particularly pleased by the level of service we were able to provide in terms of speed, certainty of close, and flexibility in transaction structuring – all part of Abacus’s client-centric Total Partnership ApproachTM.”
About Industrial Magnetics, Inc
With worldwide distribution through a combination of a direct sales force and manufacturer representatives, Industrial Magnetics is an industry leader in providing permanent magnets and electromagnets for work-holding, lifting, fixturing, conveying and magnetic separation. A specialist in custom fabricating, IMI designs engineers and manufactures magnetic assemblies and devices for customers’ specific requirements. Visit magnetics.com for more information.
About River Associates Investments, LLC River Associates Investments LLC, based in Chattanooga, TN, was founded in 1989 as a private equity partner for management teams of lower middle market companies in buyouts, divestitures and recapitalizations. River Associates invests in companies operating in a range of industries that includes manufacturing, high-margin distribution, industrial services and select retail businesses. Investing throughout the United States and Canada, it focuses primarily on companies with adjusted operating income (EBITDA) ranging from $3-10 million. Visit riverassociatesllc.com for more information.
About Abacus Finance Group, LLC
Abacus Finance, headquartered in New York, is a lower-middle market specialty finance company, focused on providing senior cash-flow financing to private equity-sponsored companies nationwide. Formed in June, 2011, Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million, and the companies it finances generally have EBITDA between $3 million and $15 million. Abacus is sponsored by New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $12 billion in assets.
Abacus is headquartered at 6 East 43rd Street, 20th Floor, New York, NY 10017. All inquiries and new investment opportunities should be directed to Tim Clifford at 212-850-4620 or to firstname.lastname@example.org.