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, Sen. Tammy Baldwin of Wisconsin wrote on Facebook. In 2012, Nikou was a recipient of The M&A Advisor's "Top 40 Under 40" award,[4] for the West Region. Doing otherwise could create confusion, disruptions and other difficulties with operations.. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc, Court Case No. Were hiring an Advocacy & Political Manager. [14] Also in 2019, OpenGate purchased the UK-based Duraco Specialty Tapes, which then acquired Infinity Tapes the following year. Hufcor employees will not be the last to suffer at the hands of OpenGate, and nothing will change unless the firm is held accountable for its ruthless profiteering. Only one of OpenGate's subsidiaries included as a plaintiff is a California LLC. 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. A global investment manager with a local touch. Weinbergs cash was to be held in escrow until stocks held by Darden Sr. were placed in a collateral account. OpenGate failed to give workers at Pennysaver and Golden Guernsey the 60 days notice of business closure that is required under U.S. labor law. LOS ANGELES - June 1, 2022 - OpenGate Capital, a global private equity firm, announced that it has exited its investment in EverZinc, a global provider of specialty zinc materials, through a sale to U.S. Zinc, a portfolio company of Aterian Investment Partners. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate Capital Signs Agreement to Acquire Extol But Fusion closed the plant only a year and a half after receiving the loan, Osten said. At OpenGate, we strive for a culture that promotes open communication and empowerment of fellow team members.. Those who cashed the bad checks were left on the hook for penalties levied by their banks. ScioTeq part of the OpenGate Capital family | Scioteq Its a story about predatory private equity run amok. To date, the firm has completed more than 75 transactions, including acquisitions and divestitures, and has acquired more than $8 billion in gross consolidated revenues. 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. OpenGate Capital. This May Day, let's show solidarity https://t.co/4v7zeBzAiz, . OpenGate manages a diverse, global portfolio across key verticals within Industrials and Technology sectors. An uncommon approach to investing in and growing complex businesses. Around the same time, it was engaged in negotiations to be acquired by another company. OpenGate Capital | LinkedIn 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 paychecks. The Golden Guernsey plant employed over 100 workers. But Pawluk said things deteriorated soon after OpenGate Capital acquired Hufcor, a family-owned company founded in Janesville 120 years ago. Federal Civil Lawsuit California Central District Court, Case No. Andrew received a Bachelor of Science degree from University of Southern . Stanziale alleged that the dairy was insolvent in December 2011, more than a year before the hurried shutdown. ScioTeq, a market leader and established name in visualization solutions for the Air Traffic Control, Avionics and Defense markets, is entering a new era as a standalone company as the result of the acquisition by Private Equity firm OpenGate Capital as of 01 July 2021. Nikou has received recognition for his business achievements. [16], In 2012, through the firm's legacy, pre-fund investment process, OpenGate Capital acquired the Latin American operations of Getronics from the Dutch conglomerate, KPN. . A native of California, Lauren attended Cal State Long Beach where she majored in journalism and political science. Nikou, its founder, is a board member at the Hammer Museum and, until recently, at the Museum of Contemporary Art. [30][31][32], Nikou sits on the Board of YELLOW, the non-profit organization founded by Pharrell Williams. They just dont flat out care about being a reputable business, from my perspective, Osten said. Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, was profitable when OpenGate bought it. 1:13-cv-01475 in the Delaware District Court. . It was one of the most shocking things that ever happened to me in my business life, Weinberg testified. A runner, rock climber and board game enthusiast, Lauren is perpetually training for the next race day. Our commitment to a sustainable future draws back to our efforts since inception andis continuously evolving. Thats the thing that bothers us most, McCarthy said. At their side are elected officials who know that the whole country needs tough measures to reform private equity. And employees became increasingly worried when PennySavers CEO, vice president of finance and the vice president of human resources all quit, Buckley said. [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. Click 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. The company is in the process of selling assets to make good on the loan, Fahn said. "Meet The Private Equity CEO Who's In Talks For His Own Reality Show," Julia La Roche, Business Insider, 8-16-2011. $16 hourly wages and generous benefits as recently as January 2021. I did NOT send that email [releasing the escrow fund].. We work with every customer to find a workable solution, but unfortunately we werent able to reach an agreement in this situation.. Above, workers attend a May 26 meeting. About Andrew Nikou - Andrew Nikou In the last 16 years, Andrew's leadership has grown OpenGate into a global company with a reputation for innovation and deal-making. EverZinc is headquartered in Lige . and prioritize people, not private equity profits. Several pre-fund, legacy investments that were made with the personal capital of Andrew Nikou and the Partners at OpenGate Capital were sold: Benvic was sold to InvestIndustrial in December 2017, NorPaper Avot-Vallee was sold in 2018 to a private investor, and in January 2019, NAKAN (the largest division within Ivy Group) was sold to Westlake Chemical Corporation.