Andrew Nikou

Andrew Nikou is the founder, Managing Partner and CEO of OpenGate Capital, a global private Buyout firm.[1] The firm is focused on the acquisition of lower middle market, non-core divisions of larger companies located around the world. From its offices in Los Angeles, CA, New York, NY, Paris, France, and São Paulo, Brazil, the firm seeks to acquire change-intensive and underperforming businesses ripe for turnaround situations.[2] To date, the firm has completed more than 30 transactions and has acquired more than $3.2 billion in gross consolidated revenues. The firm and its founder are best known for their acquisition of TV Guide Magazine in December 2008,[3] and the publication’s turn to profitability in the first quarter of 2010.[4]

Nikou serves as chairman of the board or lead director at the companies in which his firm invests including Kem One SAS, AGIS Fire & Safety, PennySaver USA, Aluminium France Extrustion, Profialis, Hamilton Scientific, Zodiac Recreational, Getronics LATAM, Fusion Paperboard, Fleurus Presse, NorPaper, Kotka Mills, TV Guide Magazine, Pacific Crest Transformers, and Sopho.

Nikou has received recognition for his business achievements. In 2012, Andrew Nikou was a recipient of The M&A Advisor's "Top 40 UNDER 40" Award,[5] for the West Region. In 2010, Nikou was named a Top Dealmaker of 2010 by Mergers & Acquisitions magazine,[6] and was dubbed a “private equity whiz" by international business and private equity publications.

Early Years

Andrew Nikou was born in Vancouver, Canada. He and his family moved to the United States when he was a child. Nikou studied finance at the University of Southern California Marshall School of Business.[7] After graduating, he worked for the Patent and License Exchange, a start-up financed by Softbank Capital.[8]

Business

In 2001, Nikou began his career in private equity at Platinum Equity.[9] At Platinum Equity, he expanded the firm’s international offices in Europe.[10] In 2004, he left Platinum Equity to start his own global investment firm.

In 2005, Andrew Nikou founded OpenGate Capital from his own savings. He turned to a handful of family offices for funding of his first deal.[11] Under Nikou’s leadership, the firm has bought distressed or neglected divisions of Fortune 500 companies such as Philips, Schlumberger, Arvin Meritor, Stora Enso and Cascades (company).[12] In 2006, OpenGate purchased OMMIC, a former division of Philips. OpenGate sold OMMIC to Egalux SA Luxembourg in 2008. A notable OpenGate Capital turnaround was an acquisition from the power company Areva.[13] OpenGate also owns Models One Ltd., which represents Alessandra Ambrosio, Irina Shayk and Bar Refaeli.[14]

In 2008, Nikou negotiated the deal for OpenGate Capital to acquire TV Guide for $50 million in assumed liabilities from owner Rovi Corporation (previously Macrovision). Later that year, Nikou led OpenGate Capital’s bid for McGraw-Hill Companies BusinessWeek magazine, then withdrew from the bidding.[15] Also in 2009, OpenGate purchased children's publishers Fleurus Presse and Junior Hebdo from Groupe Le Monde.[16] In 2010, Nikou was behind the OpenGate bid for Newsweek, owned by the Washington Post Company, but the firm did not acquire the publication.[17] Nikou has provided his expertise on buying into the media business to various trade publications.[18]

Nikou increased OpenGate’s pace of international acquisitions in the past three years. In 2012, OpenGate Capital acquired the Latin American operations of Getronics from the Dutch conglomerate, KPN. In 2011, the firm acquired NorPaper, a specialty paper manufacturer based in France. And in 2010, OpenGate acquired Brazilian-based Philips Business Communications, since renamed Sopho, and Finland-based KotkaMills, a laminating paper and wood business.[19][20] Also in 2010, Nikou led the acquisition of Nicole Farhi, a global fashion brand, from French Connection. Designer Nicole Farhi describes Nikou as a “tough businessman” with whom she has “lovely rapport.”[21] In 2011, OpenGate Capital acquired European-based wood and paper company Norampac Avot-Vallée[22] and two Cascades paper mills, now rebranded Fusion Paperboard.[23] By 2010, OpenGate had more than $500 million in capital at its disposal for investments.[24]

Purchase and plant closing of Golden Guernsey Dairy

The firm 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.[25]

On January 5, 2013, Golden Guernsey ceased operations without notice in an alleged violation of the State of Wisconsin's mass layoff/shutdown regulations. The Golden Guernsey plant employed over 100 workers.[26][27]

Closing of PennySaver USA and other Companies

Mr Nikou shut down several other companies, including PennySaver USA, Hamilton Scientific, and Zodiac boats. Several lawsuits have been filed claiming OpenGate and Mr Nikou did not follow proper protocol under the WARN Act when firing hundreds of employees from both PennySaver and Hamilton Scientific. [28][29][30]

Philanthropy

Nikou is a Board Member of the X Prize Foundation Innovation Board, and he is also on the Board of Overseers at the Hammer Museum. In 2014, it was announced that Andrew was forming a partnership with businessman, Ricardo Salinas, to bring [[31]] to Los Angeles through a partnership with the city's mayor, Mr. Eric Garcetti. 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.[32][33] Andrew also supports other local charities including Children Uniting Nations[34] and the Los Angeles Fire Department Foundation.

References

  1. ↑ "Executive Profile: Andrew Nikou," Bloomberg Businessweek, http://investing.businessweek.com/research/stocks/private/person.asp?personId=27329072&privcapId=23062926&previousCapId=23062926&previousTitle=OpenGate%20Capital, 10-17-2011
  2. ↑ "Capital Markets: OpenGate Capital," Bloomberg BusinessWeek, http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=23062926, 10-17-2011
  3. ↑ "Meet The Private Equity CEO Who's In Talks For His Own Reality Show," Julia La Roche, Business Insider, 8-16-2011, http://articles.businessinsider.com/2011-08-16/wall_street/29980017_1_private-equity-platinum-equity-pehub, 10-17-2011
  4. ↑ "TV Guide is Profitable," Luisa Beltran, 6-17-2010, PEHub, http://www.pehub.com/?s=tv+guide+profitable&image.x=0&image.y=0&image=searchsubmit, 10-17-2011
  5. ↑ http://www.maadvisor.html
  6. ↑ "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
  7. ↑ "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
  8. ↑ "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
  9. ↑ "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
  10. ↑ "OpenGate buys TV Guide," Matt Levin, Private Equity International, 10-14-2008, http://www.peimedia.com/PrintView.aspx?aid=29382&type=2&hashID=FDC160D97000B0F9E4D7B747FE184DA52F5F6A47, 10-17-2011
  11. ↑ "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
  12. ↑ "TV Guide, Once Master of the Airwaves, Tries to Survive in a Competitive Category," Stephanie Clifford, New York Times, 12-8-2008, http://www.nytimes.com/2008/12/08/business/media/08guide.html, 10-17-2011.
  13. ↑ "TV Guide, Once Master of the Airwaves, Tries to Survive in a Competitive Category," Stephanie Clifford, New York Times, 12-8-2008, http://www.nytimes.com/2008/12/08/business/media/08guide.html, 10-17-2011.
  14. ↑ "OpenGate Buys UK Modeling Agency," PEHub, 1027-2009, http://www.pehub.com/tag/opengate-capital/, 10-17-2011
  15. ↑ "OpenGate, Zuckerman drop BusinessWeek bid," Anupreeta Das, Reuters, 10-6-2009, http://www.reuters.com/article/2009/10/06/businessweek-idUSN0643496820091006, 10-17-2011
  16. ↑ "Nicole Farhi Buyer OpenGate Set to Announce Three More Deals," David Altaner, Bloomberg, 3-15-2010, http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2AnwxqSzXBI, 10-17-2011
  17. ↑ "Bids Submitted for Newsweek Sale," New York Times, 6-3-2010, http://dealbook.nytimes.com/2010/06/03/bids-submitted-for-newsweek-sale/, 10-17-1011
  18. ↑ "Deal or No Deal: 10 Rules for Buying into the Media Business," Dan Colarusso, Business Insider, 5-9-2010, http://www.businessinsider.com/deal-or-no-deal-10-rules-for-buying-into-the-media-business-2009-5, 10-17-2011
  19. ↑ "OpenGate Capital Acquires Philips Business Communications in Brazil," Latin America Venture Capital, 3-18-2010, http://lavca.org/2010/03/18/opengate-capital-acquires-philips-business-communications-in-brazil/, 10-17-2011
  20. ↑ "OpenGate buys Cascades recycled box makers," Los Angeles Business, 6-14-2011,http://www.bizjournals.com/losangeles/news/2011/06/14/opengate-buys-cascades-recycled-box.html, 10-17-2011
  21. ↑ "A different style of double act," Emma Jacobs, Financial Times, 9-10-11, http://www.ft.com/intl/cms/s/0/f922f956-dacc-11e0-a58b-00144feabdc0.html#axzz1b4DytZKS, 10-17-2011
  22. ↑ "OpenGate in Paper Deal:Global PE firm adds packaging material producer, Norampac Avot-Vallee, to its portfolio," Tamika Cody, 2-22-2011, http://www.themiddlemarket.com/news/opengate-capital-acquire-norampac-avot-vallee-cascades-216515-1.html, 10-17-2011
  23. ↑ "Los Angeles-based Private Equity Firm Acquires Sprague Paper Mill," Adam Benson, The Bulletin, 8-3-2011, http://www.norwichbulletin.com/news/x1800184681/Los-Angeles-based-equity-firm-acquires-Sprague-paper-mill#axzz1aVj1dIaJ, 10-17-2011
  24. ↑ "Top Dealmaker Andrew Nikou: The founder of Opengate Capital is making a name for himself on reclamation projects," Danielle Fugazy, Mergers & Acquisitions, December 7, 2010, http://www.themiddlemarket.com/maj/2010_25/andrew-nikou-213884-1.html, 10-17-2011
  25. ↑ "Investment firm to buy Dean Foods dairy plant," BusinessWeek, 8-15-2011, http://www.businessweek.com/ap/financialnews/D9P4IBO80.htm, 10-17-2011,
  26. ↑ Bohr, Nick (7 January 2013). "State DWD takes steps to help Golden Guernsey workers; Workers may be eligible for 60 days' pay". WISN-TV. Retrieved 8 January 2013.
  27. ↑ Engel, Jeff (7 January 2012). "Golden Guernsey Dairy abrupt closing leaves workers, state seeking answers". The Business Journal of Milwaukee. Retrieved 8 January 2013.
  28. ↑ http://www.ocregister.com/articles/opengate-668424-employees-pennysaver.html
  29. ↑ http://www.mccunewright.com/assets/news/FILED-Complaint-Benton-v-PennySaver.pdf
  30. ↑ https://www.pehub.com/2015/06/opengate-gets-sued-for-alleged-warn-act-violations/
  31. ↑ http://globenewswire.com/news-release/2014/03/05/615976/10071375/en/Photo-Release-Esperanza-Azteca-Youth-Orchestra-to-Expand-to-Los-Angeles.html Esperanza Azteca
  32. ↑ Esperanza Azteca America launches first program in Los Angeles
  33. ↑ http://www.youtube.com/watch?v=2wnVEQVL8FE
  34. ↑ "TV Guide Owner Arrives at Children Uniting Nations Oscars," Getty Images, 307-2010, http://www.gettyimages.com/detail/97532663?esource=life_license, 10-17-2011

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