SAINT PAUL, Minn., Nov. 27, 2017 /PRNewswire/ — MGC Diagnostics Corporation, (Nasdaq: MGCD) a global medical technology company (“MGCD”), announced it has agreed to be acquired by affiliates of Altus Capital Partners, Inc. (“Altus”). Altus is a private equity firm that makes control investments in middle market manufacturing businesses.
Altus will acquire all outstanding shares of MGCD for $11.03 per share in cash, or approximately $50.3 million. Under the terms of the merger agreement, Altus will commence a tender offer for all MGCD outstanding shares as promptly as possible after November 27, 2017. Upon completion of the transaction, which is expected to close in late 2017 or early 2018, MGCD will become a privately held company.
MGCD’s Board unanimously approved the acquisition agreement, which follows a review of strategic alternatives that the Company announced on January 25, 2017. In addition, MGCD directors and officers representing 8.9% of the outstanding shares have entered into tender support agreements with Altus.
The purchase price represents a 44% premium to the January 24, 2017 closing price of $7.65, and premiums of 25% and 37% to the MGCD respective closing prices on the dates one day and three months prior to the date of the announcement.
The proposed transaction is subject to customary closing conditions and approvals and the tender of a majority of MGCD outstanding shares. The purchase price will be funded through equity commitments managed by Altus and senior and mezzanine commitments from third parties.
“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,” said MGCD Board Chairman Mark Sheffert. “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.”
“We look forward to becoming part of the Altus organization,” said MGCD CEO Todd Austin. 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.”
Craig-Hallum Capital Group LLC is acting as financial advisor to MGCD.
About MGC Diagnostics
MGC Diagnostics Corporation is a global medical technology company dedicated to cardiorespiratory health solutions.