Altus Capital, in partnership with Abacus Finance, has completed a dividend recapitalization of MGC Diagnostics, a maker of non-invasive medical diagnostic systems.
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, Minnesota.
Altus acquired MGC in December 2017 with Abacus providing $18 million in senior secured debt and an equity co-investment. For the new dividend recapitalization, Abacus was the administrative agent and lead arranger.
“Abacus Finance delivered again,” said Greg Greenberg, the founder and senior partner at Altus, “and we are thrilled to continue our partnership.”
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. Altus is headquartered in Wilton, Connecticut with an additional office near Chicago in Lincolnshire, Illinois.
“We are happy to continue to support MGC Diagnostics, the company has been performing extremely well and we are excited to continue working with them as our partners,” said Tim Clifford, the president and CEO of Abacus Finance. “As in other transactions, our success was a function of our speed, cash-flow flexibility, and certainty of close – key aspects of what we call our Total Partnership Approach™.”
Abacus provides cash flow-based senior financing to private equity and family office-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $50 million. Since its founding in June 2011, Abacus has closed over $2 billion in financings.
“We’re excited by MGC’s future prospects and thrilled to support Altus Capital once again,” concluded Aized Rabbani, a managing director with Abacus.
Abacus is headquartered in New York and is an affiliate of New York Private Bank & Trust which was founded in 1850.
(Editor’s note – The Abacus Total Partnership Approach is the firm’s operating strategy that merges its cash-flow financing expertise, deep industry knowledge and client service capabilities to give its private equity and family office sponsors the certainty of close and transactional peace of mind).
© 2021 Private Equity Professional | September 30, 2021
