Abacus Finance Group was the Administrative Agent and Sole Lender for $18 million in senior secured credit facilities to support the take-private acquisition of MGC Diagnostics by Altus Capital Partners. Abacus also made an equity co-investment in MGC.
MGC designs, manufactures, and sells non-invasive cardiorespiratory diagnostic equipment, accessories, and supplies that are used by healthcare providers to manage chronic pulmonary disease, asthma, and cardiorespiratory disease.
MGC’s products are sold internationally through distributors and, in the United States, France and Belgium, primarily through a direct sales force to hospitals, university-based medical centers, medical clinics, physicians’ offices, pharmaceutical companies, medical device manufacturers, and clinical research organizations. The company was founded in 1977 and is headquartered in St. Paul (www.mgcdiagnostics.com).
“This was our first transaction with the Abacus team,” said Gregory Greenberg, Altus Founder and Senior Partner, “and they lived up to their reputation. They were able to provide assurance of close early on, moved quickly, and showed real flexibility during negotiations.”
Abacus provides cash flow-based senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million. New York-based Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).
“This was the first time we have provided financing for taking a publicly-held company private on the Abacus platform,” said Tim Clifford, President and CEO of Abacus. “Given the relative complexity of the transaction, the execution went extremely well. Altus appreciated our speed and efficiency – important aspects of the service provided in our Total Partnership Approach.”
Altus invests in corporate divestitures, management-led buyouts, and privately-held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm is headquartered in Wilton, CT with an additional office near Chicago in Lincolnshire, IL (www.altuscapitalpartners.com).
In addition to Mr. Clifford, Abacus team members involved in the transaction included Managing Director Aized Rabbani and Senior Associate Rafal Rydzewski.
© 2018 Private Equity Professional | January 23, 2018