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MGC Diagnostics to be Acquired by Private Investment Firm for $50M
MGC Diagnostics CEO Todd Austin (Photo by MGC Diagnostics)

MGC Diagnostics to be Acquired by Private Investment Firm for $50M

The buyers, Altus Capital Partners, will pay a 25 percent premium of the stock.

St. Paul-based MGC Diagnostics, which makes equipment that measures breathing and heart rates, has agreed to be acquired by the affiliates of a private investment firm for $50.3 million.

The buyers, Altus Capital Partners Inc., will pay approximately $11.03 per share in a deal that is expected to close in late 2017 or early 2018. At that point, MGC is expected to become a privately-owned company, according to a company press release. Altus’s offer marked a 25 percent increase from its Friday day close of $8.80 a share.  

Atlus, which has a split headquarters in Lincolnshire, Illinois and Wilton, Connecticut, typically invests in midmarket manufacturing firms.

“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,” said MGC CEO Todd Austin. 

In its 2017 fiscal year, MGC’s sales initially decreased by 6 percent in the first quarter—$8.7 million compared to $9.3 million from the year before. The company rebounded the following quarter, with sales rising by 4 percent year-over-year. Sales were also up 6 percent in its third quarter.