OpenGate's professionals possess the . Andrew Nikou Founder, Chief Executive Officer OpenGate Capital 10250 Constellation Boulevard, 30th Floor 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. Grace Matthews advised Chemsolv on the transaction. Our Standards: The Thomson Reuters Trust Principles. in Janesville, Wisconsin awoke to a nightmare. (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. PennySaver had been in financial distress for months before closure The lawsuits allege that a company or individual violated securities laws and are brought on behalf of the class. 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 is moving the plant to Mexico anyway. 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. OpenGate said PennySaver had to be closed because Capital One unexpectedly pulled its line of credit at the last minute. Read our website privacy and cookies policy for more information. The firm shut down its Fusion Paperboard plant just three years after acquiring it, 18 months after signing a 10-year loan from the state to remain operational, and only a few months after entering into a six-year contract with the local steelworkers union. 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It would. OpenGate Capital is a private equity firm with offices in Los Angeles and Paris that strives to acquire and optimize lower middle market businesses throughout North America and Europe. Herb Titus, on what would have been his 20th anniversary with PennySaver, spent the afternoon protesting outside OpenGate Capital in Century City recently. Nikou increased OpenGate's pace of international acquisitions in the 2010s. 3 min read. Confronted with this looming loss, Hufcor employees, Janesville residents and CWA union organizers have rallied against OpenGates greedy and exploitative practices. [34] 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. Nikou grew up with a passion for trading baseball cards and competing in breakdancing competitions. Likewise, OpenGate itself has continued to raise millions since bankrupting its previous companies, enabling these practices to continue unabated. Nikou and OpenGate executives wouldnt discuss PennySavers closing. It had been in business 50 years. A state claim for wages was filed in the dairys pending Delaware bankruptcy case. At OpenGate, we recognize the importance of building resilient infrastructure for our employees, portfolio companies and environment through responsible investing. 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. It maintained operations during the worst of the pandemic and even. 19, Ex. The spokesman, who did not want to be identified because of pending litigation, said the company warned workers about the possibility of a plant closure when it learned of the eviction threat. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. 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. Paris Area, France. Nikou has received recognition for his business achievements. it's been delivered there. 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. 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.

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