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 . The default, the hiring of the restructuring firm and the lenders presence on site paint a picture of a company in financial distress, the kind that former employees allege should have prompted OpenGate to provide a federally required 60 days notice before closing the plant. To me, you dont sign a six-year contract and decide to close a facility.. Sign in to add some. Working at OpenGate Capital | Glassdoor The cases that former employees have highlighted as OpenGate failures include: the shuttering of Golden Guernsey on a Saturday morning in 2013, with no notice to employees; the closure of Connecticut-based Fusion Paperboard shortly after it had received a state loan to stay put for 10 years; and the shutdown of OpenGates laboratory furniture business, Hamilton Scientific, after it discovered that a drug cartel had overrun its Mexico plant and it was evicted from its Texas facility. We work with every customer to find a workable solution, but unfortunately we werent able to reach an agreement in this situation.. I just dont find it funny to ruin peoples lives. 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. By continuing to use this site, closing this banner, or clicking I Agree, you agree to the use of cookies. OpenGate is a global private equity firm that acquires and . The acquisition financing was arranged via a unitranche by Deutsche Bank as . 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. and prioritize people, not private equity profits. Similarly, employees at Golden Guernsey learned the company was closing when they showed up to work only to find the doors locked. At a chaotic meeting four days after PennySaver closed, employees were handed their final pay. Once OpenGate snapped up by OpenGate in 2017, OpenGate's new regime heightened tensions and ended a relatively amicable relationship between management and the workers of IUE-CWA Local 84811 . Opengate said gang members brandished weapons to intimidate employees at the facility and parked their cars and tractor-trailers filled with unknown cargo there. They cut salaries. Coupon mailing company PennySaver USA was in default on its main operating loan for five months before it abruptly shut down on the eve of the Memorial Day weekend, something few of its roughly 680 employees knew before they were put out of work. 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. 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. Paris Area, France. 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. Too often, private equity firms like OpenGate extract cash from the companies they acquire and walk away richer, regardless of what happens to workers and communities. 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"). For ScioTeq, 2020 was again a record . OpenGate Capital : Welcomes Shawn Haghighi to the Firm's Global Senior OpenGate Capital, LLC, et al., Central District of California, Case No. About OpenGate Capital. [9], In 2019, OpenGate purchased the lock company Sargent and Greenleaf from Stanley Black & Decker. 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. Thermo Fisher Can't Dodge Suit Over Cartel-Plagued Lab Six months after the purchase, OpenGate sued Thermo Fisher, saying the company had concealed the fact that the Reynosa, Mexico, facility was under seige by the Gulf cartel, whose senior members brandished weapons at company employees and parked tractor trailers and cars at the facility. How Palm Springs ran out Black and Latino families to build a fantasy for rich, white people, 17 SoCal hiking trails that are blooming with wildflowers (but probably not for long! OpenGate gets sued for alleged WARN Act violations. A native of California, Lauren attended Cal State Long Beach where she majored in journalism and political science. Our Standards: The Thomson Reuters Trust Principles. OpenGate Capital Completes Acquisition of ScioTeq and TREALITY from [6] He was bullied in school for being short. 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. A global investment manager with a local touch. Investment Represents Strategy to Create European Aluminium Solutions Group. According to Opengate Capital, the company withheld important documents . This post was guest authored by Elisa McCartin. [22] The deal was the fifth platform investment from OpenGate's debut fund. PDF In the United States Bankruptcy Court for The District of Delaware PennySaver workers are suing OpenGate in state and federal court, alleging that the company failed to provide adequate notice about the shutdown. 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. They think its a big joke. OpenGate Capital Fully Exits Investment in EverZinc 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 . PennySaver had been in financial distress for months before closure Nikou, its founder, is a board member at the Hammer Museum and, until recently, at the Museum of Contemporary Art. 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. [14] Also in 2019, OpenGate purchased the UK-based Duraco Specialty Tapes, which then acquired Infinity Tapes the following year. LOS ANGELES, October 13, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, today announced that it has exited its investment in . In 33 years with the 83-year-old company, he saw it operate under three different owners, most recently OpenGate Capital. Among those companies was Hamilton Scientific, the enterprise allegedly overrun by drug cartel members. [5] At Platinum Equity, he expanded the firm's international presence in Europe. To date, the firm has completed more than 75 transactions, including . 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. But in court papers, Hamilton denied any illegal conduct. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc, Court Case No. [7] Nikou studied finance at the University of Southern California Marshall School of Business. 2:13-cv-03368 District Judge Audrey B. Collins, presiding. Mr. Moazami is currently the Chairman of Astrea Acquisition Corp (NASDAQ: ASAX) and Vcinity [] 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 . Its a story about predatory private equity run amok. In October 2012, OpenGate Capital bought the laboratory workstations business of Thermo Fisher Scientific, a maker of laboratory furniture. 3 min read. OpenGate Capital Reviews: What Is It Like to Work At - Glassdoor Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. After the Fusion facility closed in September 2014, the state launched several programs to retrain workers, Osten said. OpenGate gets sued for alleged WARN Act violations | PE Hub 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. (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. Withdrawing funding is a last minute resort, Capital One spokesman Michael Bulger said in an emailed statement. Its the biggest business closure in Janesville since the Great Recession. 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. OpenGate Capital Announces Acquisition of Majority Interest in InRule Emerging managers like OpenGate are seeking reception with limited partners, who generally have been happy to stick with their established relationships in uncertain markets. 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 . Attorneys are either actively filing these cases or investigating to determine whether lawsuits can be filed. 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's professionals possess the . 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 In court papers, the company said the trustees allegations are without merit. Employees who started work later arrived to find the facility locked. At age 25, he moved to Paris to help open the firm's first European office. At their side are elected officials who know that the whole country needs tough measures to reform private equity. [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. [9] In 2006, OpenGate purchased OMMIC, a former division of Philips. 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. The private equity firm claimed that the Reynosa, Mexico-based manufacturing facility, which it acquired as part of a larger deal from Thermo Fisher, had been regularly infiltrated by gangs from the Gulf Cartel since at least 2011, according to a copy of the complaint seen by Reuters. Nikou was not named as a defendant in the suit. Nikou grew up with a passion for trading baseball cards and competing in breakdancing competitions. OpenGate nevertheless was lured back in as a short-term lender to Darden. Hufcor workers battle private equity owner with shame ad - GazetteXtra An investigation by the states Department of Workforce Development in 2013 cited the dairy for violating a federal law requiring a 60-day warning of mass layoffs and said it owed workers $1.6 million. Founded in 1979, Chemsolv is a diversified distributor offering more than 1,000 chemicals including solvents, plasticizers, coolants . Hufcor employees, Janesville residents, and union organizers have rallied against OpenGates greedy and exploitative practices. 20201 an 1 mois. Ripoff Report | Open gate cap Review - Los Angeles , California Hamilton Scientific would pay employees once it got its funding together, according to the April PE Hub article. Through it all, few employees understood the depth of the companys distress. 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 . It would. Workers are suing OpenGate in state and federal court, alleging it failed to provide adequate notice to workers about the shutdown and issued final paychecks that bounced. The firm first gained recognition for the acquisition of TV Guide Magazine in December 2008,[2] and the publication's turn to profitability in the first quarter of 2010.[3]. 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. in Janesville, Wisconsin awoke to a nightmare. Andrew Nikou Founder, Chief Executive Officer OpenGate Capital 10250 Constellation Boulevard, 30th Floor 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. In the last 16 years, Andrew's leadership has grown OpenGate into a global company with a reputation for innovation and deal-making. In 2005, entrepreneur Andrew Nikou used $30,000 from his own savings to form a private equity firm, OpenGate Capital. And employees became increasingly worried when PennySavers CEO, vice president of finance and the vice president of human resources all quit, Buckley said. Class Action Lawsuit List | Open & Current Cases | ClassAction.org A fully integrated team of origination, investment and operations professionals. The firm focuses on the acquisition of lower-to-mid-market businesses in the industrials, business services, and technology sectors. She sharply criticized OpenGate Capital for the closure. Working at OpenGate Capital | Glassdoor 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 Accused of Selling Facility Used by Mexican Drug They just care about lining their pockets with money. Description. Confronted with this looming loss, Hufcor employees, Janesville residents and CWA union organizers have rallied against OpenGates greedy and exploitative practices. She briefly lived in Santiago, Chile where she edited an online magazine and worked as a translator for doctors from Malaysia following Chile's 8.8 earthquake in 2010. 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. OpenGate is moving the plant to Mexico anyway. What the fk is going on? Weinberg wrote in an email to Newkirk on Nov. 12 after learning his cash was gone, according to trial testimony. Nikou instead tries to generate goodwill as a philanthropist and has even started his own foundation, which boasts of a mission driven by values empowering individuals and communities. Nikou still sits on numerous boards, including that of the Hammer Museum in Los Angeles. 7-14-2011) . . Only logged in subscribers of this site will be able to access the shared article. 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. EverZinc is headquartered in Lige . Rapacious LA Vulture Capitalist Firm: Ruins Job, Communities for Profit 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. Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, is one of many companies reeling from the private equity model in which firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. 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. Securities class action lawsuits are filed on behalf of a class of investors or a class of holders of a particular security. Jul. Why would we put in all that effort?. One of those businesses, like PennySaver, filed for bankruptcy. In May of 2022, it was announced Thermo Fisher Scientific went to court to seek a dismissal of the lawsuit. Founder & Chief Executive Officer at OpenGate Capital . OpenGate, which acquired PennySaver in 2013, specializes in buying units of larger companies and reselling them. The legislation will end "the failed experiment of gutting Michigan workers' rights," said one lawmaker. 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 Motion was joined by defendants Andrew Nikou and Jay Yook.4 The 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. OpenGate Capital Realizes Investment in InRule Technology This spring, Hamilton Scientific, a De Pere, Wis., lab equipment maker owned by OpenGate, abruptly shut down, laying off 80 people there and 190 at plants in Texas and Arkansas without notice, according to a lawsuit filed by former employees. Above, workers attend a May 26 meeting. of the Connecticut boxboard company Fusion Paperboard, and nearly. Nikou and OpenGate executives wouldnt discuss PennySavers closing. ScioTeq part of the OpenGate Capital family | Scioteq His father, who majored in mathematics at a German university, worked at the Los Angeles Department of Water and Power. (Reuters) - Opengate Capital Group LLC filed a lawsuit on Friday alleging that laboratory equipment maker Thermo Fisher Scientific Inc. sold it a Mexican plant last year without revealing that a drug cartel was operating there. Uber drivers and other app-based workers are facing an all-out safety crisis. The Golden Guernsey plant employed over 100 workers. The suit claimed that Thermo Fisher had rushed negotiations and provided misleading answers to due-diligence inquiries. He was also in talks about a reality TV show built around his private equity business. Previously, Andrew was the Board Membe r at Yellow and also held positions at SPACInsider, Platinum Equity. Later that year, Nikou led OpenGate Capital's bid for McGraw-Hill Companies BusinessWeek magazine, then withdrew from the bidding. employees in the middle of a work day and failing to give workers their final paychecks. 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. Andrew Nikou is the Founder & Chief Executive Officer at OpenGate Capital based in Los Angeles, California. 14 at 5-6.) Fahn, speaking for OpenGate, said that the union wasnt privy to the sale because the sale wasnt final. Do Not Sell or Share My Personal Information, Musk said hed never settle an unjust legal case against him. All rights reserved. The employees say they didn't get money owed to them including their paychecks and vacation time. OpenGate closed the PennySaver on May 22 with out warning. OpenGate expected to launch next fund in quick turnaround OpenGate Capital has refinanced EverZinc, a global leading zinc 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. Thermo Fisher, the world's largest maker of laboratory equipment and scientific instruments, agreed to acquire Life Technologies Inc. "OpenGate Capital Acquires Philips Business Communications in Brazil," Latin America Venture Capital, 3-18-2010. I find it to be despicable.. 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 He said that cost cuts and other moves had pushed PennySaver back toward profitability by May and the company was nearing the end of negotiations to refinance the line of credit or sell the company when Capital One stopped returning the companys calls. Andrew Nikou Email & Phone Number - OpenGate Ca.. | ZoomInfo A $300-million (minimum) gondola to Dodger Stadium? 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. Further explore our recent investment activities and quarterly reports, 2023 OpenGate Capital Management, LLC. It had about 100 workers, some of whom arrived at the plant one January morning to find the gates locked, according to state documents. In fact, prosecutors allege, it was the senior Dardens neer-do-well son who had already spent three years in jail on an unrelated stock swindle looking to buy the lad mag. "Investment firm to buy Dean Foods dairy plant," BusinessWeek, 8-15-2011, Esperanza Azteca America launches first program in Los Angeles, Los Angeles Department of Water and Power, http://articles.businessinsider.com/2011-08-16/wall_street/29980017_1_private-equity-platinum-equity-pehub, http://www.themiddlemarket.com/maj/2010_25/andrew-nikou-213884-1.html, "Bullied as a Kid, This Founder Now Runs a $5 Billion Company. As part of the transition process, OpenGate Capital has renamed the business to EverZinc. But the checks, it turned out, would not clear. OpenGate Capital Investor Profile: Portfolio & Exits | PitchBook In 2010, Dean Foods Company, its then owner, sold Golden Guernsey to a private equity company, Open Gate Capital, LLC ("Open Gate"), as part of the settlement of an antitrust lawsuit brought by the United States Department of Justice. It would curb the industrys worst abuses and prioritize people, not private equity profits. Lauren moved back to the states in 2011 and now lives in Long Beach. But not all OpenGate deals have worked out.
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on October 21, 2023