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They had received no notice that the magazine would be shuttered. But Fusion closed the plant only a year and a half after receiving the loan, Osten said. And the firm shut down its Fusion Paperboard plant just three years after acquiring it and only a few months after entering into a six-year contract with the local steelworkers union. Likewise, OpenGate itself has continued to raise millions since bankrupting its previous companies, enabling these practices to continue unabated. 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. . On May 27, 2021, 166 workers in Janesville, Wisconsin awoke to a nightmare. OpenGate Capital is a global private equity firm active in the lower middle-market and focused on acquiring corporate carve-outs, divestitures and special situations throughout North America, Western Europe and Latin America. OpenGate Capital is a global private equity firm active in the lower middle-market and focused on acquiring corporate carve-outs, divestitures and special situations throughout North America, Western Europe and Latin America. OpenGate strategically invests in targeted sectors across five continents utilizing a diverse and experienced team with the ability to connect with business owners around the globe. 20201 an 1 mois. Description. 2:13-cv-03368 District Judge Audrey B. Collins, presiding. 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. Do Not Sell or Share My Personal Information, Musk said hed never settle an unjust legal case against him. With a strategic international presence and a focus on corporate carve . In her letter to OpenGate Capital, Baldwin writes, "Your predatory actions in Wisconsin are a powerful example of the urgent need for these reforms." A copy of Senator Baldwin's letter can be found here and below. OpenGate, which acquired PennySaver in 2013, specializes in buying units of larger companies and reselling them. (Reuters) - Opengate Capital Group LLC filed a lawsuit on Friday alleging that laboratory equipment maker Thermo Fisher Scientific Inc TMO.N sold it a Mexican plant last year without revealing that a drug cartel was operating there. Register now to read this article and more for free. His parents left their native Tehran before the Iranian Revolution and relocated to Canada, later moving with Nikou to California when he was four years old. Nikou increased OpenGate's pace of international acquisitions in the 2010s. 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. 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. during its first decade in business, has run exactly that playbook in Janesville since acquiring Hufcor in 2017. If we wanted to liquidate the company it would be done by now. You should only be asked to sign in once. They just dont flat out care about being a reputable business, from my perspective, Osten said. [1] The firm is focused on the acquisition of lower to middle market businesses that are often privately owned, or non-core divisions of larger companies located around the world. In the weeks leading up to the coupon magazines mass layoffs, managers were on a tear, asking advertisers to pay up front and offering sales representatives bonuses for bringing in the most money, Buckley said. OpenGate also faced numerous lawsuits stemming from its dealings at Hamilton Scientific, including not giving employees adequate notice of its Texas plant closure and selling a Mexican plant without disclosing it was harboring a drug cartel. [7] Nikou studied finance at the University of Southern California Marshall School of Business. While OpenGate was in negotiations to buy the business from Thermo Fisher, armed militants took cover in the Reynosa buildings cafeteria while fleeing their rivals, according to OpenGates lawsuit. 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. He was born in Vancouver, attended USCs business school and then took a job at Los Angeles private equity firm Platinum Equity in its Paris office, according to OpenGates website. It agreed to provide $3.1 million in financing in November 2013 for five days. OpenGate Capital Group, LLC, OpenGate Capital Management, LLC and PennySaver Investors, LLC's (collectively, "OpenGate"), which seeks to dismiss the Complaint3 filed by Don A. Beskrone, Chapter 7 Trustee for the estates of PennySaver USA Publishing, LLC, et al. [17][18][19], In July 2016, OpenGate closed its first institutional fund, OpenGate Capital Partners I, at $305 million, exceeding its target of $300 million and raising about twice what the average new private equity fund does, according to Preqin. [14] Also in 2019, OpenGate purchased the UK-based Duraco Specialty Tapes, which then acquired Infinity Tapes the following year. And the firm shut down its Fusion Paperboard plant just three years after acquiring it and only a few months after entering into a, 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. According to Opengate Capital, the company withheld important documents . Nikou has received recognition for his business achievements. OpenGate nevertheless was lured back in as a short-term lender to Darden. [5], Under Nikou's leadership, OpenGate Capital bought founder-owned businesses and divisions of Fortune 500 companies such as Philips, Schlumberger, Arvin Meritor, Stora Enso and Cascades. Official press release ScioTeq - EN. Emerging managers like OpenGate are seeking reception with limited partners, who generally have been happy to stick with their established relationships in uncertain markets. The case status is Pending - Other Pending. In 2010, Nikou was named a Top Dealmaker of 2010 by Mergers & Acquisitions magazine. Janesville, Wis. - U.S. Don't have an account? LOS ANGELES, June 01, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, announced that it has exited its investment in EverZinc, a global provider of specialty zinc . Thermo Fisher, the world's largest maker of laboratory equipment and scientific instruments, agreed to acquire Life Technologies Inc LIFE.O in mid-April for more than $13 billion. They cut salaries. 14 at 5-6; D.I. Among them were a French childrens book publisher, a Finnish paper producer, the Nicole Farhi division of fashion firm French Connection and Models One Ltd., the modeling agency that has represented supermodels Bar Refaeli, Alessandra Ambrosio, Linda Evangelista and others. OpenGate uncovered that the facility was being used by senior local leaders of the Mexican Gulf Cartel, according to a federal complaint filed on June 12 . At OpenGate, we strive for a culture that promotes open communication and empowerment of fellow team members.. Similarly, employees at Golden Guernsey learned the company was closing when they showed up to work only to find the doors locked. 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 Hamilton Scientific, an OpenGate-owned laboratory furniture company. One of the lenders was Andrew Nikous OpenGate Capital, the company that recently sold its TVGM Holdings (owner of TV Guide magazine). 2:17-cv-04360-SB-E ("Underlying Lawsuit") under Private Equity Liability Insurance Policy No. here to register, Not for publication, email or dissemination, Veritas-backed HMH buys educational services nonprofit NWEA, Professional services company FMP inks $36.5m from Alaris, NMS recaps environmental services firms Texas Pride and Texas Dumpster Companies, MSCP invests in services for homeowners; Patient Square launches platform for medical device makers, Leonard Green to acquire minority stake in HUB; plus Investcorp, Sound Partners, Odyssey invest in HVAC, 700 million people will make their home in African cities over the next decade, said DPIs Marc Stoneham. In 2005, entrepreneur Andrew Nikou used $30,000 from his own savings to form a private equity firm, OpenGate Capital. OpenGate said PennySaver had to be closed because Capital One unexpectedly pulled its line of credit at the last minute. Nikou was not named as a defendant in the suit. Mr. Moazami's career spans 30+ years in the technology industry; predominantly in operating roles and the last nine years as a professional venture capitalist & advisor in Silicon Valley. OpenGate tried to buy Maxim in early 2013 but was outbid by Darden Media Group. Headquartered in Los Angeles, California, . OpenGate is a global private equity firm that acquires and . 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. Thats the thing that bothers us most, McCarthy said. Grace Matthews advised Chemsolv on the transaction. Paris Area, France. We look to establish collaborative relationships with companies to drive operational improvement and realize opportunities for long-term value creation. Its not a good sign, obviously, Kasoff said of the default. June 18, 10:39 a.m.: An earlier version of this article and an accompanying photo caption reported that PennySaver workers were suing OpenGate Capital and its managing partner, Andrew Nikou. Opengate said gang members brandished weapons to intimidate employees at the facility and parked their cars and tractor-trailers filled with unknown cargo there. Stanziale alleged that the dairy was insolvent in December 2011, more than a year before the hurried shutdown. in Texas, Arkansas, and Wisconsin, who worked for the laboratory furniture company Hamilton Scientific. Reporting by Pallavi Ail in Bangalore, Karl Plume in Chicago; editing by Gunna Dickson. I worked the for a little over 4. Mexican plant In 2013, Opengate Capital Group LLC filed suit against Thermo Fisher Scientific for selling it a manufacturing plant controlled by a drug cartel. This post was guest authored by Elisa McCartin. In January of this year, Thermo Fisher initiated the eviction of Hamilton Scientific from its Texas facility, alleging that it had failed to pay rent on time three times. The suit claimed that Thermo Fisher had rushed negotiations and provided misleading answers to due-diligence inquiries. The lawsuit, filed in federal court in Los Angeles, alleged that Thermo Fisher had acted in bad faith by withholding documents and directing employees to conceal the drug gangs presence at the facility. He has a passion for people and a knack for recognizing what is needed to help businesses in . We work with every customer to find a workable solution, but unfortunately we werent able to reach an agreement in this situation.. OpenGate Capital, a global private equity firm, announced today in a joint statement with its portfolio company, Hufcor Inc. ("Hufcor"), the world leader in the design, manufacturing and installation of movable partitions and flexible space management solutions, the appointment of Mr. Koben Miceli as Chief Executive Officer, effective immediately. They think its a big joke. Employees at other OpenGate-owned companies have voiced similar complaints. OpenGate Capital is a Los Angeles based private equity firm that specializes in acquiring and optimizing lower-to-middle market businesses across North America and Europe. Last year, an OpenGate portfolio company called Fusion Paperboard in Sprague, Conn., shut down, eliminating 145 jobs and defaulting on the $1.8-million balance of a state-subsidized loan, according to the state Department of Economic and Community Development. 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. 1:13-cv-01475 in the Delaware District Court. By continuing to use this site, closing this banner, or clicking "I Agree", you agree to the use of cookies. Fahn points to OpenGates acquisition of TV Guide, auto part manufacturer Gabriel, and Europe-based companies NorPaper, Benvic, Kotkamills, and Fleurus Presse as a some of OpenGates successful turnarounds. Senator Baldwin was a co-sponsor of the Stop Wall Street Looting Act, the first major effort to reform the private equity sector, in the last Congress. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. [35][36][37], Nikou is married with children and resides in Nevada.[7]. Description. A runner, rock climber and board game enthusiast, Lauren is perpetually training for the next race day. It came as a complete shock to the management at the dairy and the union that they were about to close, said Eileen Appelbaum, a senior economist at the Washington, D.C.-based Center for Economic and Policy Research, whose book Private Equity at Work: When Wall Street Manages Main Street devotes a chapter to the Wisconsin dairy. for a better future. OpenGate has a history of buying companies only to close operations shortly thereafter, leaving communities across the country in the lurch. Once the OpenGate deal blew up, Darden Jr. and Newkirk turned to Mark Weinberg, at Versant Funding and MDW Funding, who agreed to a short-term loan of $5.5 million. Hamilton Scientific would pay employees once it got its funding together, according to the April PE Hub article. We are proud to have a history of successfully turning around these types of businesses, Fahn added. 3 min read. Before the deal even closed, executives at OpenGate met with PennySaver employees and touted their roughly 20 other acquisitions in a PowerPoint presentation obtained by the Register. Your activity looks suspicious to us. Federal Civil Lawsuit California Central District Court, Case No. OpenGate is headquartered in Los Angeles and Paris and has a seasoned in-house team of professionals . But not all OpenGate deals have worked out.
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