Med-Tech Firm Revamps C-Suite; Shares Fall 9%
MGC Diagnostics Corporation (MGCD), a publicly traded med-tech company based in St. Paul, announced Wednesday that its president and CEO will resign at the end of the month.
The company, which sells various cardiorespiratory diagnostic systems and was previously called Angeion, said President and CEO Gregg Lehman has accepted the CEO position at White Plains, New York-based Employee Benefit Solutions, Inc., a privately held provider of healthcare and wellness programs for small and mid-sized employers.
MGCD’s revenue totaled $31.6 million last year, up from $27 million the year before. It is one of the largest spenders on research and development in Minnesota and is one of Minnesota’s 80-largest public companies.
Todd Austin, currently executive vice president of global marketing, engineering, and corporate strategy, will take over as CEO after Lehman leaves. Austin joined the company in February 2012. Additionally, Executive Vice President of Global Sales and Service Matthew Margolies will be named president of the company. Margolies joined MGCD in May 2012.
MGCD also announced that Executive Vice President and Chief Financial Officer (CFO) Wesley Winnekins was named chief operating officer. Prior to joining MGCD in 2012, Winnekins served as CFO of Chanhassen-based Snap Fitness, Inc.
“Today, we implemented our executive succession plan. We are pleased that the bench strength we have developed over the past few years will move the company forward to the next level of its development,” MGCD Chairman Mark Sheffert said in a statement. “Todd Austin is widely recognized as a quality medical device executive with a broad skill set and a proven track record of success, both in the U.S. and in international markets.”
MGCD was known as Angeion until it changed its name about two years ago. Shortly thereafter, Chanhassen-based Life Time Fitness bought software and support materials, product inventory, trademarks, and websites from MGC Diagnostics for $1.24 million.
“On behalf of the board, I want to express our thanks and appreciation to Gregg Lehman for his leadership over the past three years, which has resulted in a significant increase in shareholder value during his tenure,” Sheffert said. “Gregg’s accomplishments include rebranding the company from Angeion to MGCD, instituting a vigorous process of new product development, and establishing a focused sales and marketing approach.”
MGCD’s stock price closed down 8.6 percent at 9.85 per share on Wednesday, the day following the announcement of the executive turnover.