The Gores Group
usinfo | 2013-07-04 10:50

The Gores Group, founded by CEO and Chairman, Alec E. Gores, is a global private equity firm specializing in acquiring and partnering with mature and growing businesses.

Headquartered in Los Angeles, California with offices in London and Boulder, Colorado, the firm claims to have approximately $3.6 billion in assets under management as of December 31, 2012 and is presently investing from Gores Capital Partners III, L.P. and Gores Small Capitalization Partners, L.P., which have approximately $2.1 billion and $300 million in capital commitments, respectively. Since 1987, Gores has successfully acquired and operated more than 80 companies worldwide.

The company's current portfolio includes technology, telecommunications, business services, industrial, healthcare, media & entertainment, and consumer products companies.

History
In 1978, Alec Gores began his career as a self-made entrepreneur, founding Executive Business Systems, a hardware and software distributor, which he sold eight years later to establish what has become The Gores Group today.

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.

Timeline
2012
Gores Small Capitalization Partners, L.P. receives $300 million in commitments, expanding Gores’ resources for small and lower middle market investments.

2011
Gores sells Lineage Power to General Electric in what is the largest sale transaction in Gores’ history.
Gores closes on $2.1 billion in capital commitments for its third institutional fund, Gores Capital Partners III, L.P.

2010
Sale of GCP II-owned Vincotech to Mitsubishi Electric demonstrates Gores’ global reach

2008
Gores announces joint venture partnership with Siemens AG for enterprise communication business.

2007
Gores closes on $1.3 billion in capital for its second institutional fund, Gores Capital Partners II, L.P

2004
Gores opens its London office, after several years of investment activity in the U.K. and Europe.

2003
Netherlands-based Anker BV, an independent European supplier of point of sale solutions, is acquired, firmly positioning Gores as one of the most credible investors in European assets.
The firm launches Gores Capital Partners, its first private equity fund; to date, the combined Gores private equity funds have raised over $4 billion in committed capital.

2000
Gores carves out The Learning Company from Mattel and achieves an operating profit in the first 75 days of ownership.

1998
Gores carves out certain assets of the Computer Integrated Manufacturing (CIM) organization of Texas Instruments (NYSE:TXN); the portfolio company is later named Adventa Control Technologies.

1997
Gores acquires Artemis, a subsidiary of Computer Sciences Corporation (NYSE: CSC).
Gores completes its purchase of the Connection Machines business unit from Thinking Machines Corporation.

1987
The Gores Group is founded by Alec Gores with the single vision to buy, fix and sell businesses.

1978
Alec Gores launches his own computer company, Executive Business System (EBS), with $10,000; eight years later, he sells EBS for approximately $2 million Current.

Recognition
On October 1, 2012, The Gores Group received Private Equity International's Award for Operational Excellence in the TMT sector for Lineage Power. PEI’s Operational Excellence Awards recognize and highlight the achievements in the industry.

On June 19, 2011, The Gores Group won the Global M&A Network's Atlas Award for "turnaround deal of the year", for their acquisition of National Envelope Corporation.

On December 13, 2011, The Gores Group was named the winner of the Middle-Market Deal of the Year award ($50–100 million) for their acquisition of Cosmo Specialty Fibers at the 10th Annual M&A Advisor Awards. The Gores Group was selected from 389 nominations and over 500 participating companies to receive this award.

Transactions
March 8, 2013: The Gores Group announced that it has entered into a definitive agreement to acquire three business units in Canada from the Davis + Henderson Corporation (TSX:DH), focused on (i) business process outsourcing, (ii) coupon and rebate processing, and (iii) real estate software. Terms of the transaction, which was led by The Gores Small Capitalization Partners, were not disclosed.

March 4, 2013: The Gores Group announced that it completed the acquisition of GE Healthcare Strategic Sourcing from GE Healthcare for an undisclosed amount. GE Healthcare Strategic Sourcing is based in Wilbraham, Mass., and provides electronic billing and electronic medical records outsourcing. Gores Group has appointed Rob Gontarek as the new CEO.

February 4, 2013: The Gores Group announced that it completed the acquisition of Harris Broadcast Communication Division.

January 2, 2013: The Gores Group announced that it completed the acquisition of Therakos, Inc. from Ortho-Clinical Diagnostics, Inc.

December 14, 2012: Charles Bank Capital Partners announced that it acquired United Road Services from The Gores Group for an undisclosed amount. Kathleen McCann, president and CEO, will continue to lead the company.

December 6, 2012: The Gores Group announced that it signed a definitive agreement to acquire the Harris Broadcast Communication Division of Harris Corporation for a purchase price of $225 million. Harris Broadcast Communication sells hardware and software that enables media companies to create, manage, distribute and monetize video content.

October 15, 2012: The Gores Group announced that it extended a binding offer to acquire Therakos, Inc. from Ortho-Clinical Diagnostics, Inc. Therakos is company developing products for extracorporeal photopheresis (ECP) immune modulation therapy. The terms of the transaction were not disclosed.

September 17, 2012: The Gores Group announced that it completed the acquisition of Astadia, Inc. through an affiliate for an undisclosed amount. Astadia, Inc. is a cloud computing consulting and systems integrator. Astadia will be merged with Idea Integration Corp.

July 2, 2012: The Gores Group announced that its Small Capitalization Partners fund completed the acquisition of Idea Integration Corp. from Adecco Group North America. Idea Integration Corp. is a provider of business and technology services.

July 2, 2012: The Gores Group announced that its Small Capitalization Partners fund completed the acquisition of Glotel in North America from Adecco Group North America. Glotel is a mobile communications network services and staffing services provider.

December 8, 2012: The Gores Group announced that it completed the acquisition of Alpheus Communications through an affiliate for an undisclosed amount. The company is a fiber network and data center operator in Texas.

June 4, 2012: The Gores Group acquired Elo Touch Solutions from TE Connectivity through an affiliate for $380 million in cash. The company manufactures touch systems.

November 4, 2011: The Gores Group today announced that it had completed the acquisition of Clark Holdings Inc..

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.

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: The 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.

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.

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 supplier of specialty fabric materials for the automotive industry, a portfolio company 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. agreed to buy Lineage Power Holdings Inc. for $520 million from The Gores Group. 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 micro power source 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 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 digital cable, HDTV, 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 16, 2010: Gores announced the acquisition of the Cosmopolis, Washington cellulose mill from Weyerhaeuser. The mill had been closed since 2006. Washington Governor Christine Gregoire praised the sale at the time.

September 7, 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 1, 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.

August 30, 2010: The Gores Group made an undisclosed but significant investment J. Mendel, a New York luxury brand.

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