Dean Starkman previously covered Wall Street for the Los Angeles Times; he left in 2016. A link has been emailed to you - check your inbox. [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. Former employees of at least three former OpenGate portfolio companies have filed lawsuits or complaints alleging OpenGate or the companies it owned violated labor laws requiring businesses to notify employees 60 days before mass layoffs. [6] Nikou graduated from William Howard Taft Charter High School in Woodland Hills, California, where he was active in the Persian community. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. In addition, OpenGate was to get 10 percent in Maxim plus a $500,000-a-year annual consulting fee, according to testimony. Elaine Buckley, a former senior vice president for sales and a 35-year employee, said she believes the company was in liquidation mode for months. 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. . Attorneys are either actively filing these cases or investigating to determine whether lawsuits can be filed. Read our website privacy and cookies policy for more information. Barry L. Kasoff, president of Realization Services who served as PennySavers chief restructuring officer, denied the assertion and said the decision to close with little notice was dictated by Capital One. The legislation will end "the failed experiment of gutting Michigan workers' rights," said one lawmaker. Mr. Moazami is currently the Chairman of Astrea Acquisition Corp (NASDAQ: ASAX) and Vcinity [] In 2001, Nikou began his career in private equity at Platinum Equity. Uber drivers and other app-based workers are facing an all-out safety crisis. Only months after signing the new union contract, employees were notified that the mill would close, said Richard Harrelle, president of the Steelworkers Local 1840, which represented around 100 of the approximately 145 people who worked at the company. Those companies included a dairy in Wisconsin, a boxboard manufacturer in Connecticut and a laboratory furniture maker with operations in several U.S. states and Mexico. The firm focuses on the acquisition of lower-to-mid-market businesses in the industrials, business services, and technology sectors. He was also in talks about a reality TV show built around his private equity business. In too many cases with private equity, big firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc, Court Case No. OpenGate said PennySaver had to be closed because Capital One unexpectedly pulled its line of credit at the last minute. The companys shares closed at $84.46 on Friday on the Nasdaq. Doing otherwise could create confusion, disruptions and other difficulties with operations.. Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, was profitable when OpenGate bought it. Reporting by Pallavi Ail in Bangalore, Karl Plume in Chicago; editing by Gunna Dickson. You should only be asked to sign in once. Description. Also this year, four employees filed a lawsuit against Hamilton Scientific and OpenGate in Texas federal court, alleging they shuttered the plant without giving the legally required notice. Andrew Nikou - Founder, CEO & Managing Partner - OpenGate Capital OpenGate Capital is a private equity firm that strives to acquire and optimize lower-to-middle market businesses throughout North America and Europe. Paris Area, France. At OpenGate, we strive for a culture that promotes open communication and empowerment of fellow team members.. This isnt just another story about corporate globalization or pandemic upheaval. But not all OpenGate deals have worked out. At their side are elected officials who know that the whole country needs tough measures to reform private equity. [33] In 2014, Nikou announced that he was forming a partnership with businessman Ricardo Salinas to bring Esperanza Azteca Youth Orchestra to Los Angeles through a partnership with the city's mayor, Eric Garcetti. A fully integrated team of origination, investment and operations professionals. U.S. Senator Tammy Baldwin Questions Los Angeles Private Equity Firm's But in court papers, Hamilton denied any illegal conduct. OpenGate Capital has an overall rating of 3.9 out of 5, based on over 15 reviews left anonymously by employees. The lawsuits allege that a company or individual violated securities laws and are brought on behalf of the class. Founded in 2005, OpenGate Capital is a private equity firm based in Los Angeles, California. On May 27, 2021, 166 workers in Janesville, Wisconsin awoke to a nightmare. Nikou has received recognition for his business achievements. Lawyer Harvey Newkirk, formerly with the Bryan Cave firm, this week sits in the legal dock in Manhattan federal court, accused of concocting a fraud with Calvin Darden Jr., a convicted felon, to rob investors of millions of dollars by falsely presenting successful businessman Calvin Darden Sr. as the leading force behind the deal. The company is in the process of selling assets to make good on the loan, Fahn said. In December 2014, OpenGate Capital hired Realization Services, an East Coast company specializing in turnaround management. An uncommon approach to investing in and growing complex businesses. The firm faced six different lawsuits after abruptly laying off Pennysaver employees in the middle of a work day and failing to give workers their final . Register now to read this article and more for free. close to . Financing terms required PennySaver to meet certain financial goals and maintain various debt ratios at certain levels. So far, six lawsuits have been filed against OpenGate Capital and/or PennySaver in local and federal courts for failing to notify employees of mass layoffs, according to Richard McCune, a lawyer . OpenGate heads for third fund launch targeting up to $700m You may occasionally receive promotional content from the Los Angeles Times. Maxim sale fraud case rages on after felon misleads investors OpenGate closed PennySaver on May 22 without warning. Capital One said it tried to work with PennySaver on the closure, but to no avail. OpenGate Capital Signs Agreement to Acquire Extol And in 2010, OpenGate acquired Brazilian-based Philips Business Communications, since renamed Sopho which was merged into Getronics LATAM, and Finland-based KotkaMills, a laminating paper and wood business. Similarly, employees at Golden Guernsey learned their company was closing when they showed up to work only to find the doors locked. The private equity firm bought the dairy in September 2011, after the Department of Justice required its previous owner, Dean Foods, to sell it because of antitrust concerns that Dean had too large a share of the school milk business. The goal of this section is to provide consumers with a comprehensive resource on class action and mass tort lawsuits. With a strategic international presence and a focus on corporate carve-outs and complex . Working at OpenGate Capital | Glassdoor 1 at 17.) "OpenGate buys Cascades recycled box makers," Los Angeles Business, 6-14-2011. Hufcor workers battle private equity owner with shame ad - GazetteXtra It agreed to provide $3.1 million in . 2:17-cv-04360-SB-E ("Underlying Lawsuit") under Private Equity Liability Insurance Policy No. OpenGate is moving the plant to Mexico anyway. They cut salaries. Sontchi, C.J. 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. [30][31][32], Nikou sits on the Board of YELLOW, the non-profit organization founded by Pharrell Williams. To me, you dont sign a six-year contract and decide to close a facility.. [5] After graduating, he worked for the Patent and License Exchange, a start-up financed by Softbank Capital.[5]. Instead, he sits on numerous boards and hes even been in talks about a. built around his private equity business. It had about 100 workers, some of whom arrived at the plant one January morning to find the gates locked, according to state documents. 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. 14 at 5-6; D.I. Defendants OpenGate Capital, LLC and OpenGate Publishing, LLC (collectively, "the Open Gate entities" or "Defendants") filed the Motion to Disnnss that is presently before the Court. MILWAUKEE (January 11, 2022) - Chemsolv, Inc. ("Chemsolv"), a leading distributor of commodity and specialty chemicals based in Roanoke, VA, has been acquired by OpenGate Capital ("OpenGate"). Its not a good sign, obviously, Kasoff said of the default. It would curb the industrys worst abuses and prioritize people, not private equity profits. Darden promised to repay OpenGate $3.41 million on Friday for the loan made on Monday, according to court testimony. Thomas Bardet - Senior Vice President Operations - OpenGate Capital LOS ANGELES, August 23, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, announced today it . 1:13-cv-01475 in the Delaware District Court. 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. Later that year, Nikou led OpenGate Capital's bid for McGraw-Hill Companies BusinessWeek magazine, then withdrew from the bidding. This article was originally published on OtherWords. 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. In October 2019, OpenGate Capital closed on the firm's second institutional fund, OpenGate Capital Partners II, oversubscribed on its original $450 million target, with approximately $585 million in commitments. 2019 - janv. Acquiring and creating transformative value in the lowertomiddle market across North America and Europe. Thats the thing that bothers us most, McCarthy said. OpenGate Capital Group LLC et al v. . OpenGate gets sued for alleged WARN Act violations. June 16, 2021. ScioTeq part of the OpenGate Capital family | Scioteq In May of 2022, it was announced Thermo Fisher Scientific went to court to seek a dismissal of the lawsuit. 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. 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 wrote. OpenGate sued Thermo Fisher for breach of contract, negligent and fraudulent misrepresentation, and other things. Why is Frank McCourt really pushing it? A court filing by the trustee overseeing the bankruptcy proceedings said Golden Guernsey owed $1.5 million because it had violated state labor laws that require 60 days notice to employees of mass layoffs. Beskrone v. OpenGate Capital Grp., LLC (In re PennySaver U.S. Publ'g Class Action Lawsuit List 2023 Join Eligibility Stanziale alleged that the dairy was insolvent in December 2011, more than a year before the hurried shutdown. No tags have been applied so far. [15] In 2018, OpenGate acquired the Italian stove and fireplace manufacturer Jotul from the European private equity group Ratos. PEP2788708 to OpenGate Capital Management. 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. The acquisition financing was arranged via a unitranche by Deutsche Bank as . Thermo Fisher Can't Dodge Suit Over Cartel-Plagued Lab "OpenGate Capital Acquires Philips Business Communications in Brazil," Latin America Venture Capital, 3-18-2010. LOS ANGELES, October 13, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, today announced that it has exited its investment in . "OpenGate+Capital" | US Decisions | Law | CaseMine OpenGate Capital raised a new fund: OpenGate Capital Partners II ($585,000,000) News Aug 20, 2019 FinSMEs OpenGate Capital Adds Mr. Damian Blazy as Principal in Operations Joshua Adams Email & Phone Number - OpenGate Ca.. | ZoomInfo 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. Andrew Nikou is the Founder & Chief Executive Officer at OpenGate Capital based in Los Angeles, California. When PennySaver closed on May 22, it left 678 employees without a final paycheck or compensation for their accrued vacation days and it meant they had to scramble for health benefits. But in some cases, as with PennySaver, external circumstances frustrate our ability to have our investments realize their full potential.. Nikou was born in 1977 in Vancouver, British Columbia, Canada. Around the same time, it was engaged in negotiations to be acquired by another company. OpenGate Capital, which owns PennySaver, has closed other companies It had been in business 50 years. In too many cases with private equity, big firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. OpenGate Capital Fully Exits Investment in EverZinc Andrew Nikou Founder, Chief Executive Officer OpenGate Capital 10250 Constellation Boulevard, 30th Floor In the May 2013 filing, OpenGate claimed it was misled into buying the division it later renamed Hamilton Scientific, and that site visits before the sale had been structured to avoid discovery of the hostile encroachment and occupation of the Reynosa facility by cartel members. MALLOY MITRA VS OPENGATE CAPITAL LLC | Court Records - UniCourt See here for a complete list of exchanges and delays. If we wanted to liquidate the company it would be done by now. OpenGate tried to buy Maxim in early 2013 but was outbid by Darden Media Group. This post was guest authored by Elisa McCartin. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc during its first decade in business, has run exactly that playbook in Janesville since acquiring Hufcor in 2017. The first named plaintiff, OpenGate Capital Group LLC, and four of its subsidiaries named as plaintiffs are creatures of Delaware law as well. Type: Company - Private. EverZinc is headquartered in Lige . With a strategic international presence and a focus on corporate carve . 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. The closure of PennySaver only reaffirmed the Connecticut state senators opinion of OpenGate. Founded in 1979, Chemsolv is a diversified distributor offering more than 1,000 chemicals including solvents, plasticizers, coolants . Our tax dollars should make life better not go to waste on bloated military contracts and Pentagon boondoggles. [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]. That explanation ignores the blatant injustice done to Hufcor workers, whose woes reflect the influence of predatory private equity, and tells a story of Wall Street run amok. 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The lawsuit was dismissed in April 2016. These people have no idea what theyre in for, said Joanna Storm, whose husband, Robert, was abruptly laid off from OpenGate-owned Golden Guernsey Dairy in Waukesha, Wis., after working there 19 years. Founded in 2005, OpenGate Capital is a global private equity firm that strives to acquire and optimize lower middle market businesses throughout North America and Europe with a strategic focus on operational improvement, innovation and growth. It agreed to provide $3.1 million in financing in November 2013 for five days. PennySaver had been in financial distress for months before closure Newkirk was fully involved in the scam, prosecutors allege. OpenGate Capital, which owns PennySaver, has, Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), OpenGate Capital, which owns PennySaver, has closed other companies, too, Whats new: Loma Villas apartments sell for $21.5M to investor, 4 dead in Mojave Desert community after shooting report, El Chapo sons send Mexico cartels cheap fentanyl into US, Sacramento Snapshot: Cities would need to include homeless-serving housing in state plans under new bill, Orange County restaurants shut down by health inspectors (April 20-27), More land sliding at Casa Romantica; residents evacuated, trains halted through San Clemente, Orange County Artist of the Year winners announced, Then and Now: Photos of Casa Romantica show damage caused by landside, Fire at Barnes & Noble in Orange disrupts book-signing event, OC Marine who volunteered in Ukraine, survived rocket attack: I would do it again, The DMV says permission to drive is based on ability, but older drivers are scrutinized more, Cold, drizzly week ahead for Southern California, A look at Orange Countys baseball teams and the CIF-SS playoffs, Joe Bidens re-election bid is off to a bad start, Do Not Sell/Share My Personal Information. Hufcor is shipping its Janesville plant to Monterrey, Mexico, making it the biggest business closure in Janesville since the town lost 2,500 jobs when a GM plant closed during the Great Recession. If we wanted the employees to be paid, we had to immediately terminate all the employees other than those that were needed to liquidate, Kasoff said. OpenGate gets sued for alleged WARN Act violations | PE Hub 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. By continuing to use this site, closing this banner, or clicking I Agree, you agree to the use of cookies. 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.. A global investment manager with a local touch. 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. OpenGate Capital is talking to limited partners about launching its next flagship, which could target up to $850 million, sources told Buyouts. OpenGate Capital Reviews: What Is It Like to Work At - Glassdoor On 09/21/2021 Finsa Portafolios, S A de C V, filed a Property - Personal Property Fraud lawsuit against OpenGate Capital, LLC,. "Nicole Farhi Buyer OpenGate Set to Announce Three More Deals," David Altaner, Bloomberg, 3-15-2010. Our Team - OpenGate Capital Not the case? OpenGate is not facing any lawsuits for lack of notification with regard to the mills closure. [8] In 2004, he left Platinum Equity and moved back to Los Angeles to start his own global investment firm. 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. Employees of other OpenGate companies have suffered similar fates. 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.
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