MGC Diagnostics $50M Sale to Private Equity Firm Finalized
MGC CEO Todd Austin (image provided).

MGC Diagnostics $50M Sale to Private Equity Firm Finalized

Todd Austin said MGC will now focus on expanding into foreign markets and other growth opportunities.

St. Paul-based MGC Diagnostics, which makes equipment for diagnosing asthma and lung disease, announced the completion of its acquisition by the private equity firm Altus Capital Partners Inc at $50.3 million.

The deal, which was done for $11.03 a share, means that MGC will no longer be a publicly traded company, which CEO Todd M. Austin said would allow them to take more “calculated risks” in pursuit of faster growth. 

“We believe that by now working with Altus, strategically focusing on areas of expansion, investing and capitalizing the company in new products and new markets, we can outpace our historical growth rate and move at an even faster rate,” Austin told TCB.  

MGC, a $40 million a year company, according to Austin, had faced the challenge and costs associated with being a publicly traded company, along with being regulated by the FDA. 

“It makes it pretty challenging to try to grow in different ways or take some calculated risks to expand into international markets and different segments as opposed to always focusing on the core business, which is very predictable, very safe, but also, relatively flat when you look at it as a growth opportunity,” he said. 

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.

Austin said that MGC would be adding staff in research and development, product development and sales. 

Altus, which has a split headquarters in Lincolnshire, Illinois and Wilton, Connecticut, typically invests in mid-market manufacturing firms.