MGC Diagnostics sold for $50 million

Altus Capital to acquire MGC Diagnostics for $11.03 per share in cash

MGC Diagnostics (MGCD) announced it has agreed to be acquired by affiliates of Altus Capital Partners.

MGC Diagnostics Corporation designs, markets, and sells non-invasive cardiorespiratory diagnostic products in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

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 $50.3M.

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.

MGCD closed at $8.80.


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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