The Gores Group
Encyclopedia
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
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.
Gores closed its first institutional private equity fund, Gores Capital Partners, L.P. in November 2003 with $400 million of committed capital. 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.
Alec Gores
Alec E. Gores is an American businessman who made his fortune through leveraged buyouts of technology firms. His personal wealth was estimated at roughly $1.5 billion by Forbes magazine in 2008.-Early life and education:...
, is a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
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
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, California with offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Boulder, Colorado
Boulder, Colorado
Boulder is the county seat and most populous city of Boulder County and the 11th most populous city in the U.S. state of Colorado. Boulder is located at the base of the foothills of the Rocky Mountains at an elevation of...
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.
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.Gores closed its first institutional private equity fund, Gores Capital Partners, L.P. in November 2003 with $400 million of committed capital. 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.
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.Liz ClaiborneAnne Elisabeth Jane "Liz" Claiborne was a Belgian-born American fashion designer and entrepreneur. Claiborne is best known for founding Liz Claiborne Inc. which in 1986 became the first company founded by a woman to make the Fortune 500...
(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.
- 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%.
- August 17, 2011: Carlyle Group announced that it has completed the acquisition of French-based SagemcomSAGEMSAGEM was a major French company involved in defence electronics, consumer electronics and communication systems.In 2005, Sagem merged with SNECMA to form SAFRAN...
, 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.
- August 4, 2011: The Gores Group announced that it has agreed to acquire the United States operations of HypercomHypercomHypercom was a founding member of the Secure POS Vendor Alliance, a non-profit organization created by Hypercom, Ingenico and VeriFone, to increase awareness of and improve payment industry security. Hypercom was founded in Australia in 1978....
. Terms of the transaction, which were the result of a pending merger between Hypercom and VeriFone Systems, Inc.VeriFoneVeriFone is a company that makes point-of-sale equipment. It was founded and incorporated in Hawaii in 1981, and named itself after its first product, the name standing for Verification telephone....
, 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.
- 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.
- 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.
- 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.
- January 13, 2011: General Electric Co.General ElectricGeneral Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
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.
- 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 ElectricMitsubishi Electricis a multinational electronics and information technology company headquartered in Tokyo, Japan. It is one of the core companies of the Mitsubishi Group....
. 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 CommunicationsCharter CommunicationsCharter Communications is an American company providing cable television, high-speed Internet, and telephone services to more than 4.7 million customers in 25 states. By revenues, it is the fourth-largest cable operator in the United States, behind Comcast, Time Warner Cable, and Cox 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.
- September 16th, 2010: Gores announced the acquisition of the Cosmopolis, WA high purity cellulose mill from WeyerhaeuserWeyerhaeuserWeyerhaeuser is one of the largest pulp and paper companies in the world. It is the world's largest private sector owner of softwood timberland; and the second largest owner of United States timberland, behind Plum Creek Timber...
. 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."
- 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.
- September 1st, 2010: Gores, in a joint venture with Platinum EquityPlatinum EquityPlatinum Equity, LLC is a private equity investment firm founded by Tom Gores in 1995. The firm focuses on leveraged buyout investments of established companies in the U.S. and Europe....
, 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.
- August 30th, 2010: The Gores Group made an undisclosed but significant investment in red carpet favorite J. Mendel, a New York global luxury brand.
Current portfolio
- Alliance EntertainmentAlliance EntertainmentAlliance Entertainment, LLC is a distributor of music, movies, and game software. From 1995 through 2005, Alliance Entertainment was also the parent company of All Media Guide. In 2005, it merged with Source Interlink. Platinum Equity and the Gores Group acquired Alliance in 2010....
- Big Strike, Inc.
- Cobridge Communications
- Cosmo Specialty Fibers
- Enterasys NetworksEnterasys NetworksFormed in March 2000 as a spin-off of Cabletron Systems, Enterasys Networks is a networking company catering almost exclusively to large enterprises...
- Diagnostic Health Corp.
- First Communications
- J. Mendel
- National Envelope Corporation
- Norment Security Group
- Sage Automotive Interiors
- Sagemcom
- Siemens Enterprise CommunicationsSiemens Enterprise CommunicationsSiemens Enterprise Communications is a joint venture between the American private equity firm The Gores Group and German industrial conglomerate Siemens AG.The joint venture was announced on July 29, 2008, and was launched on October 1, 2008...
- Stock Building Supply
- Tiburon
- United Road Services
- Westwood OneWestwood OneWestwood One was an American radio network and was based in New York City. At one time, it was managed by CBS Radio, the radio arm of CBS Corporation, and Viacom and was later purchased by the private equity firm The Gores Group...