Nikou grew up with a passion for trading baseball cards and competing in breakdancing competitions. ScioTeq part of the OpenGate Capital family | Scioteq May 17-18, 2023 Hilton Tower Bridge, London, May 23-24, 2023 Convene 117 West 46th Street, New York, Get limited access to our industry news, analysis and data, plus regular email updates. We look to establish collaborative relationships with companies to drive operational improvement and realize opportunities for long-term value creation. OpenGate Capital is talking to limited partners about launching its next flagship, which could target up to $850 million, sources told Buyouts. OpenGate Capital is a private equity firm that strives to acquire and optimize lower-to-middle market businesses throughout North America and Europe. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc, Court Case No. Confronted with this looming loss, Hufcor employees, Janesville residents and CWA union organizers have rallied against OpenGates greedy and exploitative practices. They cut salaries. Thermo Fisher was not immediately available for comment outside of normal U.S. business hours. Open Gate Capital aquired my company Pennysaver USA 1 1/2 years ago. OpenGate Capital, a Los Angeles firm that amassed $5 billion in revenue during its first decade in business, has run exactly that playbook in Janesville since acquiring Hufcor in 2017. [11] Also in 2009, OpenGate purchased children's publishers Fleurus Presse and Junior Hebdo from Groupe Le Monde. Andrew McCarthy, 53, started working for Golden Guernsey when he was 19 years old. Our Team - OpenGate Capital 2:13-cv-03368 District Judge Audrey B. Collins, presiding. In addition, OpenGate was to get 10 percent in Maxim plus a $500,000-a-year annual consulting fee, according to testimony. LOS ANGELES, August 23, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, announced today it . OpenGate Capital - Recent News & Activity At age 25, he moved to Paris to help open the firm's first European office. (Photo provided by Americans for Financial Reform). They have a right to do what they did as far as liquidate the company, but they dont have a right to do it in the manner they did.. Fusion employees received 60 days notice in July and stayed on until the mill closed in September. OpenGate Capital - Darien Group Generating long-term value 7-14-2011) . Ripoff Report | Open gate cap Review - Los Angeles , California OpenGate said PennySaver had to be closed because Capital One unexpectedly pulled its line of credit at the last minute. OpenGate Capital is a global private equity firm headquartered in Los Angeles, California and Paris, France that focuses on the acquisition and optimization of underperforming businesses in the lower middle market throughout North America and Europe. OpenGate Capital, the private equity firm that owns their employer, Hufcor, announced it was moving its plant out of Janesville, taking those workers jobs and livelihoods with it. But not all OpenGate deals have worked out. The firm focuses on the acquisition of lower-to-mid-market businesses in the industrials, business services, and technology sectors. This rating has decreased by -11% over the last 12 months. OpenGate Capital Investor Profile: Portfolio & Exits | PitchBook It bought Gabriel Ride Control, a shock absorber maker losing $20 million a year, returned it to profitability and preserved 1,400 jobs before selling it in 2012. Andrew Nikou is the founder and CEO of OpenGate Capital, a global private buyout firm. Kasoff, who also handled the Connecticut plant for OpenGate, said Fusion acted properly in all respects in selling some assets to a competitor and said it retains ownership of its real estate and other assets, which it will sell to pay off creditors. $16 hourly wages and generous benefits as recently as January 2021. Financing terms required PennySaver to meet certain financial goals and maintain various debt ratios at certain levels. In the last 16 years, Andrew's leadership has grown OpenGate into a global company with a reputation for innovation and deal-making. The efforts by Cerberus Capital Management to unload Maxim magazine in late 2013 may go down as one of the most litigious divestments in publishing history. Sontchi, C.J. [25] In that same year, the firm also completed six platform investments, and one add-on, all within the second fund. OpenGate nevertheless was lured back in as a short-term lender to Darden. This post was guest authored by Elisa McCartin. Withdrawing funding is a last minute resort, Capital One spokesman Michael Bulger said in an emailed statement. Only one of OpenGate's subsidiaries included as a plaintiff is a California LLC. A native of California, Lauren attended Cal State Long Beach where she majored in journalism and political science. OpenGate Capital General Information. One of the lenders was Andrew Nikous OpenGate Capital, the company that recently sold its TVGM Holdings (owner of TV Guide magazine). In 2005, Nikou founded OpenGate Capital with $30,000 from his own savings. A Delaware federal judge on Tuesday rejected Thermo Fisher Scientific Inc.'s bid to toss a suit alleging it fraudulently concealed that a Mexico manufacturing facility it sold to private equity . Esko Successfully Closes Sale of Kongsberg Business To OpenGate Capital In 33 years with the 83-year-old company, he saw it operate under three different owners, most recently OpenGate Capital. 9JANESVILLE The labor union that represents workers at Janesville's Hufcor factory is now pressuring Hufcor owner OpenGate Capital with a shame campaign that's playing out in Los Angeles, OpenGate's corporate home city. . Official press release ScioTeq - EN. Those who cashed the bad checks were left on the hook for penalties levied by their banks. He was also in talks about a reality TV show built around his private equity business. Working at OpenGate Capital | Glassdoor OpenGate sued Thermo Fisher for breach of contract, negligent and fraudulent misrepresentation, and other things. How to avoid leaving money on the table, Congressional investigators blame airlines for most flight cancellations, First Republic Bank stock plunges to record low as rescue plan proves elusive, Fed faults Silicon Valley Bank execs and itself in bank failure. Home - OpenGate Capital 2023 NYP Holdings, Inc. All Rights Reserved, this week sits in the legal dock in Manhattan federal court, pleaded guilty to his own Maxim-related fraud charges in November, Woman has 'loud, full body orgasm' in the middle of LA concert, $76K NJ boarding school admits falling 'tragically short' in protecting teen who killed self after bullying, 'rapist' taunts, Meghan Markle's ailing dad says he refuses 'to be buried by her' in 'final ever' interview, Rihannas iconic Met Gala looks through the years, Fans question North Wests lavish pre-Met Gala gift for Kim Kardashian: No way, Perez Hilton: Boring Meghan and Harry need to give up and move back to UK, Elon Musk Tells Bill Maher Woke Mind Virus Is Dangerous On Real Time, Prince Harry's coronation role still a mystery as William's is revealed. Chief Operating Officer & Managing Director, Head of Investor Relations & Communications, Operations Expert, Manufacturing & Supply Chain, Senior Advisor, European M&A - Technology, Founder, Executive Chairman, XPRIZE Foundation, Technology Expert, Industrials, Environmental, & Manufacturing 4.0, 2023 OpenGate Capital Management, LLC. While Janesville was once a manufacturing hub, it has experienced the devastating consequences of unfettered corporate greed. [26], Prior to raising its first institutional fund, OpenGate also acquired the Waukesha, Wisconsin plant and brand rights to Golden Guernsey Dairy as the result of an antitrust divestment of Dean Foods, which was required to sell the plant to purchase GGD's other plants in the state. OpenGate Capital, a Los Angeles firm that amassed $5 billion in revenue during its first decade in business, has run exactly that playbook in Janesville since acquiring Hufcor in 2017. But Fusion closed the plant only a year and a half after receiving the loan, Osten said. Your activity looks suspicious to us. A $300-million (minimum) gondola to Dodger Stadium? OpenGate Capital | LinkedIn Language links are at the top of the page across from the title. On 06/01/2015 MALLOY MITRA filed a Labor - Other Labor lawsuit against OPENGATE CAPITAL LLC. He just settled this one, DeSantis board approves suing Disney in response to lawsuit, Regulators seize First Republic Bank, sell to JPMorgan Chase, What the work-from-home era has done to office politics, First Republic up in air as regulators juggle banks fate. Please check your spam or junk folder just in case The spokesman, who did not want to be identified because of pending litigation, said the company warned workers about the possibility of a plant closure when it learned of the eviction threat. After laying off all 166 workers at Hufcor's Janesville plant, OpenGate Capital drove the company . Capital One said it tried to work with PennySaver on the closure, but to no avail. Debra Clancy, a senior account manager at PennySaver, joined about 30 other former employees as they yelled towards the 17th floor of a building that houses OpenGate Capital in Century City during a recent protest against the company. Hufcor employees, Janesville residents, and union organizers have rallied against OpenGates greedy and exploitative practices. The acquisition financing was arranged via a unitranche by Deutsche Bank as . In 2001, Nikou began his career in private equity at Platinum Equity. for a better future. In September 2013, OpenGate acquired PennySaver for $22.5 million. The trustee, Charles Stanziale, said OpenGate made no net investment in the dairy after its initial purchase and the value was consistently eroded over the months leading to bankruptcy. Our tax dollars should make life better not go to waste on bloated military contracts and Pentagon boondoggles. When Brea-based PennySaver abruptly closed last month at the end of a seemingly normal workday, employees of the classified ad magazine were stunned. Its the. Don't have an account? We have just sent you an email so you can verify your account. Hufcor workers battle private equity owner with shame ad in Los Angeles Fahn, speaking for OpenGate, said that the union wasnt privy to the sale because the sale wasnt final. I did NOT send that email [releasing the escrow fund].. In May of 2022, it was announced Thermo Fisher Scientific went to court to seek a dismissal of the lawsuit. OpenGate is headquartered in Los Angeles and Paris and has a seasoned in-house team of professionals . OpenGate Capital is part of the Finance industry, and located in California, United States. [9], In 2019, OpenGate purchased the lock company Sargent and Greenleaf from Stanley Black & Decker. [21], In November 2016, OpenGate Capital completed the acquisition of the zinc products business of the Belgian company Umicore for $150 million in debt and equity. OpenGate gets sued for alleged WARN Act violations | PE Hub Click Investment Represents Strategy to Create European Aluminium Solutions Group. OpenGate Capital Management has sued the British parent company of a German industrial engine-maker to recover fees after the private equity firm's 347 million ($480 million) deal to buy the . The company was starting to be profitable. OpenGate Capital, the private equity firm that owns their employer, Hufcor, announced it was moving their plant out of Janesville taking those workers jobs and livelihoods with it. A bankruptcy trustee subsequently alleged in a court filing that Nikou and OpenGate had obtained the company at a bargain purchase price when the fair value of assets exceeded liabilities by $10.9 million. His father, who majored in mathematics at a German university, worked at the Los Angeles Department of Water and Power. To date, the firm has completed more than 75 transactions, including . In December 2014, OpenGate Capital hired Realization Services, an East Coast company specializing in turnaround management. It is normal course and practice that all parties to a contemplated transaction withhold announcements to any outside parties until there is certainty there will be closure, Fahn said. . But those changes did not prepare workers for its sudden closure when, in the middle of the afternoon on a Friday, employees were asked to pack up and leave. This case was filed in U.S. Courts Of Appeals, U.S. Court Of Appeals, Ninth Circuit. U.S. Senator Tammy Baldwin Questions Los Angeles Private Equity Firm's [27], On January 5, 2013, Golden Guernsey ceased operations without notice in an alleged violation of the State of Wisconsin's mass layoff/shutdown regulations. Former employees of OpenGate Capital portfolio company Hamilton Scientific have filed a class action complaint alleging the firm and company owe them compensation after the company . Earlier this year, employees at Hamilton Scientifics Wisconsin facility received notices that they would be laid off in 60 days but were then furloughed, according to an article from PE Hub, a publication that focuses on private equity companies. OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. To date, OpenGate has laid off 678 California workers from the Pennysaver classified ad magazine, 100 Wisconsin workers at its Golden Guernsey dairy plant, 140 employees of the Connecticut boxboard company Fusion Paperboard, and nearly 200 employees in Texas, Arkansas, and Wisconsin, who worked for the laboratory furniture company Hamilton Scientific. Its not a good sign, obviously, Kasoff said of the default. 1:13-cv-01475 in the Delaware District Court. [20] As of August 2018, OpenGate's first fund had completed nine platform investments, five of which had closed in 2016. We need to take legislative action in Congress to rip up the predatory playbook that these private equity firms use to leave workers with nothing but pink slips and lost livelihoods, Senator Tammy Baldwin of Wisconsin, , the first major effort to reform the private equity sector, in the last Congress. With its global presence and deep focus on target sectors and investment types, OpenGate is known to bring innovation and transformational value to complex transactions. OpenGate Capital is planning the launch of its third flagship fund over the next 6-12 months, with a target of up to $700m, according to a source close to the situation., Funds, Buyout, France, UK / Ireland, Benelux, Southern Europe, DACH, Nordics, CEE, OpenGate Capital, Exclusive [12] In 2010, Nikou was behind the OpenGate bid for Newsweek, owned by the Washington Post Company, but the firm did not acquire the publication.[13]. In too many cases with private equity, big firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. The companys shares closed at $84.46 on Friday on the Nasdaq. The lab workstations unit, headquartered in Wisconsin, had facilities in Mexico, Texas and Arkansas. In October 2012, OpenGate Capital bought the laboratory workstations business of Thermo Fisher Scientific, a maker of laboratory furniture. OpenGate Capital Fully Exits Investment in EverZinc Do Not Sell or Share My Personal Information, Musk said hed never settle an unjust legal case against him. Employees who started work later arrived to find the facility locked. But in some cases, as with PennySaver, external circumstances frustrate our ability to have our investments realize their full potential.. [5] After graduating, he worked for the Patent and License Exchange, a start-up financed by Softbank Capital.[5]. 3 min read. Thermo Fisher made none of the upgrades that were recommended by its security advisers in January and February 2012, and took no meaningful action to fortify or further secure the Facility in response to the continuing cartel infiltration, the complaint said. Private equity, an ownership structure that puts distant financiers in charge of how a business is run, has been shown to result in worse health outcomes for patients, at greater cost. [10], In 2008, Nikou negotiated the deal for OpenGate Capital to acquire TV Guide for $1 and $50 million in assumed liabilities from owner Rovi Corporation (previously Macrovision). Contact the writer: 714-796-2286 or [email protected]. Our six-week newsletter will help you make the right decision for you and your property. INTRODUCTION Before the Court is the Motion to Dismiss Pursuant to FRCP 12(b)(6) filed by OpenGate Capital Group, LLC, OpenGate Capital Management, LLC and PennySaver Investors, LLC's (collectively, "OpenGate"), which seeks to dismiss the Complaint filed by Don A. Beskrone, Chapter 7 Trustee for the estates of PennySaver USA Publishing, LLC, et al. Then, their final checks bounced. Nikou and OpenGate executives wouldnt discuss PennySavers closing. It would curb the industrys worst abuses and prioritize people, not private equity profits. OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation, and growth. I worked the for a little over 4. 14 at 5-6; D.I. OpenGate is moving the plant to Mexico anyway. "Nicole Farhi Buyer OpenGate Set to Announce Three More Deals," David Altaner, Bloomberg, 3-15-2010. Class Action Lawsuit List 2023 Join Eligibility OpenGate Capital Completes Acquisition of ScioTeq and TREALITY from Even as hundreds of American workers have suffered from OpenGates schemes, Andrew Nikou, the OpenGate founder and CEO, has not faced any meaningful financial or social consequences for repeated business failures at the hands of his firm. All rights reserved. Post-closing, Open Gate employee Andrew Nikou was appointed as the sole member of Golden Guernsey.
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