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McDevitt Out as Medifast CEO, MacDonald to Take Helm
Posted February 2, 2012
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OWINGS MILLS, Md. - Medifast, Inc. (NYSE: MED) announced that it is parting ways with CEO Michael S. McDevitt when his employment agreement expires on February 8.
McDevitt will be replaced with current executive chairman Michael C. MacDonald.
McDevitt joined Medifast in 2002 as the controller and held several subsequent positions, including vice president of Finance, president, and and CFO before being promoted to CEO in 2007.
Barron's recently remarked that Medifast was being supplanted by Weight Watchers as the go-to weight management company.
"After missing sales and earnings estimates twice in 2011 as its performance deteriorated, the company has seen its stock plunge about 50 percent over the past 12 months. The market value has shriveled to just $231 million, and a further fall of 20 percent or more could well lie ahead."
Medifast stock, which closed at $16.10 on Thursday, is down almost 34 percent for the one year period.
MacDonald, a Medifast Board member since 1998, was appointed Medifast's Executive Chairman of the Board on October 31, 2011, effective November 4, 2011. Most recently, Mr. MacDonald served as an Executive Vice President at Office Max, Inc. where he led the Contract Division, a $3.6 billion business unit. Prior to Office Max, Mr. MacDonald spent 33 years serving in a variety of senior corporate officer positions for Xerox Corporation, including Senior Vice President of Worldwide Operational Effectiveness, President of Marketing Operations and Global Accounts and President of Xerox North America. Among his most significant roles was leading the turnaround in North America from 2000 to 2004, as President of the North American Solutions Group, a $6.5 billion division of Xerox. Mr. MacDonald also has international experience in marketing, sales and operations with both Xerox and Office Max.
"I'm extremely pleased to have the opportunity to work with the strong Medifast team and leverage my experience to enhance the Company's strategic direction as we continue to make the necessary infrastructure investments to support the Company's future long-term growth," continued MacDonald. "We believe we are early in the evolution of the expansion of our multichannel, clinically proven weight-loss products and programs and look forward to our next phase of growth."
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