The Gores Group
The Gores Group, founded by Alec E. Gores, is a private equity firm focused on acquiring controlling interests in mature and growing businesses.
Since 1987 Gores has acquired over 80 companies worldwide with combined revenues in excess of $21 billion. Currently, Gores has approximately $4 billion in equity under active management. The Gores Group is headquartered in Los Angeles, California with offices in London and Boulder, Colorado[1]
In January 2011 The Gores Group closed its third private equity fund, Gores Capital Partners III (GCP III), with total capital commitments of $2 billion, which exceeded the fund’s $1.5 billion target by over 30%. A majority of previous investors participated in the new fund, while increasing their commitment by 36% in aggregate.[2]
History
Alec Gores began his career as a self-made entrepreneur and operating executive. In the mid-1980s, Mr. Gores began acquiring and operating non-core businesses from major corporations and building value in those entities, a decision that ultimately led to the founding of what has evolved into The Gores Group.[3]
Gores closed its first institutional private equity fund, Gores Capital Partners, L.P. in November 2003 with $400 million of committed capital.[4] The firm's second fund, Gores Capital Partners II, L.P. held a final closing in June 2007 with $1.3 billion of committed capital. Gores Capital Partners II, L.P. invested in notable businesses such as Lineage Power Systems and Siemens Enterprise Communications.[5]
Investment strategy
Gores is committed to a focused investment strategy that has been driven by the firm's background in operating and managing over 80 businesses across many sectors. Given the firm's history and background, it maintains particular expertise in the technology, telecommunications, media, consumer, health care, business services and industrial areas. The firm is focused on non-core and attractively valued situations where it can leverage its operating skills, experienced management oversight, understanding of optimal exit alternatives and speed of execution.
Transactions
- September 2, 2011: Liz Claiborne, Inc. (NYSE:LIZ) today announced that it has agreed to sell an 81.25% majority stake of its global Mexx business to The Gores Group, with the fashion conglomerate retaining the remaining shares. The global Mexx business will continue to be led by Thomas Grote as Chief Executive Officer.[6]
- September 1, 2011: An affiliate of The Gores Group announced that it has entered into a definitive merger agreement with Clark Holdings Inc. (NYSE AMEX: GLA), a non-asset-based provider of logistical services to the print media industry and other supply chain management services. Clark's stockholders will receive $0.46 in cash for each share of Clark common stock they hold at the time of the merger, which represents a premium to the current market closing share price on September 1, 2011 of 171%.[7]
- August 17, 2011: Carlyle Group announced that it has completed the acquisition of French-based Sagemcom, a global high-technology group specializing in broadband communications and energy activities, from The Gores Group. Carlyle said in a statement it now owned 70 percent of Sagemcom, while the company's management and employees had the remaining 30 percent. Sagemcom has more than 6,000 employees globally and posted sales of 1.4 billion euros in 2010.[8]
- August 4, 2011: The Gores Group announced that it has agreed to acquire the United States operations of Hypercom. Terms of the transaction, which were the result of a pending merger between Hypercom and VeriFone Systems, Inc., were not disclosed. The acquired company provides electronic payment and transaction devices and value-added services at the point of transaction to thousands of retail and banking industries customers in the United States.[9]
- June 1, 2011: The Gores Group announced that it has made an investment in Big Strike, Inc., a designer and manufacturer of apparel for women. The company's products are marketed under the Heart Soul, Soulmates, Free to Love, Halo and the recently acquired Tracy Evans brands, which include Tracy Evans, Star City and First Option. These labels are currently sold through channels such as Kohl's, JC Penney and Dillards.[10]
- May 9, 2011: The Gores Group announced that it partnered with management to acquire Sage Automotive Interiors, Inc., a market-leading supplier of high-performance specialty fabric materials for the automotive industry, from an affiliate of Azalea Capital, LLC.[11]
- March 11, 2011: Gores Group acquired Alliance Entertainment acquired EDGE Entertainment Distribution, a wholesale distributor of pre-recorded music and movie titles, related accessories and other products. EDGE primarily serves independent music retailers, public libraries and college book stores. Financial terms of the deal were not disclosed.[12]
- January 13, 2011: General Electric Co. agreed to buy Lineage Power Holdings Inc. for $520 million from The Gores Group to tap demand for electricity management from a surge in mobile computing. Lineage offers equipment that converts power to direct current from alternating current as well as power-module and data-center systems in the $20 billion so-called micro-power industry.[13]
- January 5, 2011: The Gores Group closed its sale of Vincotech Holdings Sarl, a developer and manufacturer of power modules and inverters for the industrial and solar power market, to Mitsubishi Electric. Financial details of the sale were not disclosed.
- October 22, 2010: The Gores Group announced that its affiliate Cobridge Communications ("Cobridge") has acquired certain cable systems from Charter Communications. Cobridge, which will operate the systems acquired from Charter, provides telecommunications services, including advanced Digital Cable, HDTV, High-Speed Internet and Digital Telephone services, to residential and commercial customers, primarily in the Southeastern United States. Cobridge serves approximately 65,000 customers across seven states.[14]
- September 16th, 2010: Gores announced the acquisition of the Cosmopolis, WA high purity cellulose mill from Weyerhaeuser. The mill had been closed since 2006 and the Gores investment is expected to revitalize the local economy. Washington Govenor Chris Gregoire called the sale "fantastic news for the Grays Harbor community and the entire state of Washington," saying it "means the return of hundreds of living-wage jobs in Grays Harbor County."[15]
- September 7th, 2010: The Gores Group, announced that it had acquired substantially all of the assets of National Envelope Corporation through a transaction under section 363 of the U.S. Bankruptcy Code. National Envelope was founded in 1952 and is the largest envelope producer in the United States, manufacturing 37 billion envelopes annually.[16]
- September 1st, 2010: Gores, in a joint venture with Platinum Equity, acquired Alliance Entertainment from its parent company, Source Interlink Co. Alliance, with roughly $750 million in revenue, is the largest wholesale distributor of CD, DVD, and video game titles in the United States.[17]
- August 30th, 2010: The Gores Group made an undisclosed but significant investment in red carpet favorite J. Mendel, a New York global luxury brand.[18]
Current portfolio
References
- ^ Company Website. www.gores.com. The Gores Group.
- ^ The Gores Group closes $2 billion private equity fund. CPI Financial.
- ^ Matt Krantz (March 5, 2002).Fixer-Upper Pro Loves a Challenge. USA Today.
- ^ Gores Technology Group, LLC Closes $400 Million Private Equity Fund.Press Release (November 17, 2003).
- ^ Alec Gores: '100% devoted' to private equityFortune (February 16, 2011).
- ^ Liz Claiborne cleans closet with Mexx sale New York Post. (September 2, 2011).
- ^ Clark Holdings Inc. Agrees to be Acquired by Affiliate of The Gores Group Sacramento Bee. (September 1, 2011).
- ^ Carlyle says finalises buy of France's Sagemcom from The Gores Group Reuters. (August 20, 2011).
- ^ The Gores Group Agrees to Acquire the United States Operations of Hypercom Corporation Reuters. (August 04, 2011).
- ^ The Gores Group Acquires Big Strike, Inc. AltAssets. (June 01, 2011).
- ^ The Gores Group Acquires Sage Automotive Interiors Yahoo Finance. (May 09, 2011).
- ^ GAlliance Entertainment Acquires EDGE Entertainment Distribution Thestreet.com. (March 11, 2011).
- ^ GE Energy to Acquire Gores Group's Lineage Power Holdings for $520 Million Bloomberg. (January 13, 2011).
- ^ The Gores Group and Cobridge Communications Announce Acquisition of Cable Systems from Charter Business Wire. (October 22, 2010).
- ^ Gov. Gregoire’s statement on purchase of Cosmopolis mill Press Release (September 16, 2010).
- ^ Jeff Bounds (September 17, 2010).National Envelope Corp. bought out of Ch. 11.Dallas Business Journal.
- ^ Private Equity Beat (September 1, 2010). In Family Affair, Platinum Equity and Gores Group Close First Combined Deal. The Wall Street Journal.
- ^ J. Mendel Taps Los Angeles Private Equity Firm for Expansion.Business Wire.
External links
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Private equity firms · Venture capital firms · Portfolio companies
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