Wikipedia

Andrew Nikou

(Redirected from OpenGate Capital)

Andrew Nikou is a Canadian businessman who is the founder and CEO of OpenGate Capital, a global private buyout firm.[1]

Andrew Nikou
Born1977; 47 years ago (1977)
Vancouver, British Columbia, Canada
Alma materUSC Marshall School of Business
OccupationBusinessman
Known forOpenGate Capital
SpouseOdelia Nikou
Children2

The firm is focused on acquiring lower to middle market businesses that are often privately owned, or non-core divisions of larger companies located around the world. 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 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]

Nikou is actively involved with the management of each of the companies held in the portfolio.

Nikou has received recognition for his business achievements. In 2012, Nikou was a recipient of The M&A Advisor's "Top 40 Under 40" award[4] for the West Region. In 2010, Nikou was named a Top Dealmaker of 2010 by Mergers & Acquisitions magazine.[5] However, his actions have also drawn substantial criticism, including numerous lawsuits.

Early years

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Nikou was born in 1977 in Vancouver, British Columbia, Canada. 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. His father, who majored in mathematics at a German university, worked at the Los Angeles Department of Water and Power.

Nikou grew up with a passion for trading baseball cards and competing in breakdancing competitions.[6] He was bullied in school for being short.[6]

Nikou graduated from William Howard Taft Charter High School in Woodland Hills, California, where he was active in the Persian community.[7] Nikou studied finance at the University of Southern California Marshall School of Business.[5] After graduating, he worked for the Patent and License Exchange, a start-up financed by Softbank Capital.[5]

Career

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Platinum Equity

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In 2001, Nikou began his career in private equity at Platinum Equity. At age 25, he moved to Paris to help open the firm's first European office.[5] At Platinum Equity, he expanded the firm's international presence in Europe.[8] In 2004, he left Platinum Equity and moved back to Los Angeles to start his own global investment firm.

OpenGate Capital

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In 2005, Nikou founded OpenGate Capital with $30,000 from his own savings.[5]

OpenGate Capital is a global private equity firm that acquires mid-market companies in the following industries: industrials, technology, consumer and business services.[9]

By 2016, OpenGate had raised its first institutional fund and had made more than 40 acquisitions to turn around lower and middle-market businesses.[10]

OpenGate Now has $1.5 billion in assets under management, specializing in the industrials and chemicals industries.[10]

Fortune 500 division acquisitions

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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.[11] In 2006, OpenGate purchased OMMIC, a former division of Philips. OpenGate sold OMMIC to Egalux SA Luxembourg in 2008.[11]

In 2019, OpenGate purchased the lock company Sargent & Greenleaf from Stanley Black & Decker.[12]

Media acquisitions

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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). TV Guide was profitable again within 2 years, and OpenGate sold it in 2015 for three times the cash it put into the business.[10]

Later in 2008, Nikou led OpenGate Capital's bid for McGraw-Hill Companies BusinessWeek magazine, then withdrew from the bidding.[13] Also in 2009, OpenGate purchased children's publishers Fleurus Presse and Junior Hebdo from Groupe Le Monde.[14] In 2010, Nikou was behind the OpenGate bid for Newsweek, owned by the Washington Post Company, but the firm did not acquire the publication.[15]

International acquisitions

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Nikou increased OpenGate's pace of international acquisitions in the 2010s.

In 2019, OpenGate acquired the German content-management platform CoreMedia.[16] Also in 2019, OpenGate purchased the UK-based Duraco Specialty Tapes, which then acquired Infinity Tapes the following year.[17] In 2018, OpenGate acquired the Italian stove and fireplace manufacturer Jotul from the European private equity group Ratos.[18]

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. In 2011, the firm acquired NorPaper Avot Vallée, a specialty paper manufacturer based in France. And in 2010, OpenGate acquired Brazilian-based Philips Business Communications, since renamed Sopho which merged into Getronics LATAM, and Finland-based KotkaMills, a laminating paper and wood business.[19][20][21]

In April 2024, OpenGate sold the French waterproofing and building insulation firm SMAC to Compagnie Financière Jousset, making 10 times its $17 million investment. The company was acquired and formed in a carve-out from Colas Group in 2019.[10]

OpenGate Capital Partners I and II

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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.[22] As of August 2018, OpenGate's first fund had completed nine platform investments, five of which had closed in 2016.[23]

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.[24] The deal was the fifth platform investment from OpenGate's debut fund.[25] OpenGate rebranded the business EverZinc; within Umicore, it generated $425 million in revenue in 2015.[26] In January 2019, EverZinc purchased G.H. Chemicals and Microzinc, collectively known as GHC. This was OpenGate's second add-on acquisition.[27]

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.

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.[28] In that same year, the firm also completed six platform investments, and one add-on, all within the second fund.

Power Partners Inc., the first investment completed in OpenGate's first fund, was realized in November 2019 through the sale to Pioneer Transformers, a portfolio company of Mill Point Partners.[29]

Other acquisitions

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OpenGate's other acquisitions include manufacturing companies Chemisphere, a St. Louis, Missouri-based specialty solvent blender and chemical distributor,[30] and Extrusiones de Toledo (Extol), one of the leaders in the aluminum extrusion sector in Spain and France.[31][32]

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.[33]

On January 5, 2013, Golden Guernsey ceased operations in an alleged violation of the State of Wisconsin's mass layoff/shutdown regulations. The Golden Guernsey plant employed over 100 workers.[34][35]

Past closures also included PennySaver USA and Hamilton Scientific. Lawsuits have been filed under the WARN Act when firing hundreds of employees from PennySaver and Hamilton Scientific.[36][37][38]

Film

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Andrew was the Executive Producer of an Academy Award nominated short documentary "The Barber of Little Rock."[39][40]

Philanthropy

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Nikou sits on the Board of YELLOW, the non-profit organization founded by Pharrell Williams.[41] 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.[42] On October 7, 2014, an official ceremony was held to celebrate the inauguration of the first Esperanza Azteca America program at the Florence Nightingale Middle School in Los Angeles.[43][44][45]

In 2016, Andrew Nikou started the Andrew Nikou Foundation, an organization that focuses on education.[9] That same year, Nikou sponsored an anti-bullying initiative between The Andrew Nikou Foundation and XPRIZE, of which he sits on the Innovation Board.[46]

In 2021, the Andrew Nikou Foundation, together with USC and other partners, started Education (Re)Open, designed to address faults in the education system exacerbated by the COVID-19 pandemic.[47][48]

Personal life

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Nikou is married with children and resides in Nevada.[7]

References

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  1. ^ "Stocks". Bloomberg.com. Retrieved 2022-09-02.
  2. ^ "Meet The Private Equity CEO Who's In Talks For His Own Reality Show – Business Insider". 2012-04-02. Archived from the original on 2012-04-02. Retrieved 2023-05-26.
  3. ^ "Search: TV Guide profitable". PE Hub. Retrieved 2022-09-02.
  4. ^ "40 Under 40 West Award Winners Announced" (PDF). The M&A Advisor. April 24, 2012. p. 2. Retrieved November 6, 2024.
  5. ^ a b c d e "Top Dealmaker Andrew Nikou: The founder of Opengate Capital is making a name for himself on reclamation projects," Danielle Fugazy, Mergers & Acquisitions, 12-7-2010, http://www.themiddlemarket.com/maj/2010_25/andrew-nikou-213884-1.html, 10-17-2011
  6. ^ a b Bova, Dan (2016-10-20). "Bullied as a Kid, This Founder Now Runs a $5 Billion Company. Here's What He's Doing to Help Others". Entrepreneur. Retrieved 2016-10-21.
  7. ^ a b La Roche, Julia. "Meet The Private Equity CEO Who's In Talks For His Own Reality Show". Business Insider. Retrieved 9 September 2016.
  8. ^ Levin, Matt (14 October 2008). "OpenGate buys TV Guide". Private Equity International. Retrieved 29 March 2023.
  9. ^ a b Falconer, Kirk (2022-07-12). "Off-duty: Andrew Nikou on Paris, Kobe Bryant's Mamba mentality and founding OpenGate". Buyouts. Retrieved 2024-08-24.
  10. ^ a b c d Tucker, Hank (2024-07-22). "How This Small Private Equity Firm Earns 40% Returns Specializing In Obscure Corporate Carve-Outs". Forbes. Retrieved 2024-08-24.
  11. ^ a b Clifford, Stephanie (2008-12-08). "TV Guide, Once Master of the Airwaves, Tries to Survive in a Competitive Category". The New York Times. ISSN 0362-4331. Retrieved 2022-09-02.
  12. ^ Chen, I-Chun (January 30, 2019). "OpenGate Capital to buy lock maker from Stanley Black & Decker". LA Business Journal.
  13. ^ "UPDATE 2-OpenGate, Zuckerman drop BusinessWeek bid – sources". Reuters. 2009-10-06. Retrieved 2022-09-02.
  14. ^ "Nicole Farhi Buyer OpenGate Set to Announce Three More Deals," David Altaner, Bloomberg, 3-15-2010, https://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2AnwxqSzXBI, 10-17-2011
  15. ^ "Bids Submitted for Newsweek Sale". DealBook - NYTimes. 2010-06-03. Retrieved 2022-09-02.
  16. ^ Cutchin, James (November 6, 2019). "OpenGate Closes $585 Million Fund, Acquires CoreMedia". LA Business Journal.
  17. ^ "OpenGate Capital Portfolio Company Duraco Specialty Tapes Acquires Infinity Tapes". World News Network. March 3, 2020.
  18. ^ Kellaher, Colin (November 7, 2018). "OpenGate to Buy AICO From Ambienta SGR". The Wall Street Journal.
  19. ^ "Private equity firm scoops up Getronics' Latin American portfolio from KPN". BNamericas.com. January 24, 2012.
  20. ^ "OpenGate Capital Acquires Philips Business Communications in Brazil". LAVCA. 2010-03-18. Retrieved 2023-11-07.
  21. ^ "OpenGate buys Cascades recycled box makers". www.bizjournals.com. 2011-06-14. Retrieved 2023-11-07.
  22. ^ Lee, Armie. "The Deal: OpenGate's Entree to OPM". OpenGateCapital.com. Retrieved 29 September 2016.
  23. ^ Witkowsky, Chris. "Andrew Nikou, OpenGate founder, talks challenges of raising a first-time fund". pehub.com. PE Hub. Retrieved 29 September 2016.
  24. ^ "Umicore completes sale of zinc units to U.S. private equity firm". Reuters. 2016-11-28. Retrieved 2016-12-09.
  25. ^ "OpenGate seals fifth platform deal, moves through debut fund - PE Hub". PE Hub. Retrieved 2016-12-09.
  26. ^ "OpenGate Capital Acquires Belgian Zinc Supplier Umicore | Los Angeles Business Journal". labusinessjournal.com. 28 November 2016. Retrieved 2016-12-09.
  27. ^ Maio, Pat (2019-01-25). "OpenGate Backs EverZinc's Add-on Acquisition of G.H. Chemicals Ltd. and Microzinc". Los Angeles Business Journal. Retrieved 2024-08-24.
  28. ^ "OpenGate Capital's Second Institutional Fund Closes $585M". DailyAlts. November 8, 2019.
  29. ^ "OpenGate Capital buys Power Partners". LA Business Journal. January 19, 2016.
  30. ^ Mathews, Jessica (2022-01-19). "Inside crypto exchange FTX's new venture fund". Fortune. Retrieved 2024-08-24.
  31. ^ "Membership Levels". Iberian Lawyer. 2024-05-13. Retrieved 2024-08-24.
  32. ^ Bravo, Pepe (2022-08-22). "El fondo OpenGate aterriza en España con la compra de Extol a MCH". EXPANSION (in Spanish). Retrieved 2024-08-24.
  33. ^ "Investment firm to buy Dean Foods dairy plant," BusinessWeek, 8-15-2011, [1], 10-17-2011,
  34. ^ Bohr, Nick (7 January 2013). "State DWD takes steps to help Golden Guernsey workers; Workers may be eligible for 60 days' pay". WISN-TV. Archived from the original on 2013-01-26. Retrieved 8 January 2013.
  35. ^ Engel, Jeff (7 January 2012). "Golden Guernsey Dairy abrupt closing leaves workers, state seeking answers". The Business Journal of Milwaukee. Retrieved 8 January 2013.
  36. ^ "OpenGate Capital, which owns PennySaver, has closed other companies, too". Orange County Register. 2015-06-25. Retrieved 2022-09-02.
  37. ^ "Filed Complaint - Benton v PennySaver" (PDF). McCune - Wright Law Group LLP. Orange County, California. May 26, 2015. Archived from the original (PDF) on 2015-08-07. Retrieved 2016-02-18.
  38. ^ "OpenGate gets sued for alleged WARN Act violations". 2 June 2015.
  39. ^ "One Man's Fight to Close the Racial Wealth Gap, in "The Barber of Little Rock"". The New Yorker. 2024-01-10. Retrieved 2024-08-24.
  40. ^ "The Barber of Little Rock". Moviefone. 2023-10-03. Retrieved 2024-08-24.
  41. ^ "YELLOW | Leadership". YELLOW. Retrieved 2022-09-02.
  42. ^ Salinas, Grupo (5 March 2014). "Photo Release -- Esperanza Azteca Youth Orchestra to Expand to Los Angeles" (Press release). Retrieved 2016-09-01.
  43. ^ "Public-Private Partnership Launches Orchestra Program for Underprivileged Los Angeles Youth". Retrieved 2016-09-01.
  44. ^ Esperanza Azteca America launches first program in Los Angeles
  45. ^ Archived at Ghostarchive and the Wayback Machine: Esperanza Azteca se expande a Los Ángeles. YouTube.
  46. ^ Bova, Dan (2016-10-20). "Bullied as a Kid, This Founder Now Runs a $5 Billion Company. Here's What He's Doing to Help Others". Entrepreneur. Retrieved 2024-08-24.
  47. ^ Speier, Mia (2021-04-28). "The Education (Re)Open to implement education solutions". Daily Trojan. Retrieved 2024-08-24.
  48. ^ "Crowdsourcing innovative solutions to improve schools via The Education (Re)Open". USC Rossier School of Education. 2021-05-04. Retrieved 2024-08-24.
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