PE firm Altus Capital to acquire MGC Diagnostics for $50m

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MGC Diagnostics

Private equity firm Altus Capital Partners has inked a deal to acquire MGC Diagnostics Corp in a $50.3 million deal.

In the deal, Altus will pay $11.03 per share for each share of MGCD, equalling out to approximately $50.3 million, representing a 44% premium on its January 24 closing price of $7.65.

“We look forward to becoming part of the Altus organization. Our strategies for product innovation and growth are nicely aligned and together we believe we can accelerate the delivery of new product offerings to our customers.  Altus’s financial strength provides incremental funding for our product development pipeline initiatives,” MGCD CEO Todd Austin said in a press release.

Under terms of the merger agreement, Altus will begin its tender offer for shares after November 27, with an expected close date in either late 2017 or early 2018, making MGCD a privately held company.

MGCD’s board approved the acquisition agreement unanimously after reviewing strategic alternatives on January 25, and directors and officers of the company representing 8.9% of the outstanding shares have entered into tender support agreements with Altus.

“After a review of strategic alternatives by our board of directors, we are pleased to reach this agreement with Altus, which provides our shareholders with immediate liquidity and substantial certainty of value. We believe this transaction presents a winning proposition for all our stakeholders.  Altus is a strategic-minded and growth-oriented investor in the manufacturing space with a proven track record of partnering with company management,” MGCD chair Mark Sheffert said in a prepared statement.

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