Golden Gate Capital

Golden Gate Capital
Private
Industry Private equity
Founded 2000 (2000)
Headquarters San Francisco, California, United States
Products Leveraged buyout, growth capital
AUM $15+ billion [1]
Number of employees
 75 [2]
Website www.goldengatecap.com

Golden Gate Capital is an American private equity firm based in San Francisco. The firm makes investments in a number of select industries, including technology, financial services, retail and industrial, through leveraged buyout transactions as well as significant minority purchases and growth capital investments. As of April 2018, it had over $15 billion in assets under management (AUM).[3]

The firm was founded in 2000, by former investment professionals from private equity firm Bain Capital, as well as business consultants from its affiliate Bain & Company.

Golden Gate's investment fund is structured as an evergreen fund with no finite life, meaning Golden Gate does not have to sell all investments within five to 10 years in order to raise another fund and can instead fundraise as deals are made.[4]

It has approximately 54 investment professionals.[2]

Investments

In the aftermath of the bursting of the Dot-com bubble the firm has shown a pattern of investments in technology companies that may have been distressed by the recession of that time.

In 2006, it bought Neways International for $500 M, acquiring the company at an auction held by the divorce court after a $700 M transaction led by Ramy El-Batrawi was abandoned because of the feuding between the divorcing couple that owned Neways International.[5]

On May 15, 2007, Limited Brands announced its intent to sell a 67% stake in Express to Golden Gate Capital Partners. When the sale was finalized in July 2007, Golden Gate's stake in the company was 75% for approximately $550M, instead of the announced 67%.

In 2008, the firm made a larger investment buying a majority stake in the Romano's Macaroni Grill restaurant chain for $131M.

In June 2009, the company announced the purchase of the J. Jill brand business from Talbots.[6] In April 2011, the Bahrain-based private equity firm Arcapita bought Jill Acquisitions from Golden Gate.[7]

In 2011, it acquired California Pizza Kitchen.[8]

On October 9, 2012, Wolverine World Wide, Golden Gate Capital and Blum Capital took over Collective Brands.[9]

On July 28, 2014 Golden Gate completed the purchase of Red Lobster from Darden Restaurants for $2.1 billion.[10]

In November 2014, Golden Gate Capital agreed to buy Angus Chemical Co. and its Sterlington plant from Dow Chemical for $1.215 billion.[11]

In May 2015, the company backed Philip P. Gass and Kostas Cheliotis with $750 million for a reinsurance company.[12]

In January 2017, the company purchased the Bob Evans Restaurants division from Bob Evans Farms for $565 million, stating that the foods segment is "its fastest-growing and most profitable segment and believes this transition will result in higher returns for shareholders." [13]

On August 8, 2017, Golden Gate Capital finalized the acquisition of Neustar, Inc. (previously NSR - publicly traded company prior to its buyout).

References

  1. ↑
  2. 1 2 "Archived copy". Archived from the original on 2017-11-16. Retrieved 2017-04-29.
  3. ↑
  4. ↑ Dai, Shasha (16 October 2014). "5 Things to Know About Golden Gate Capital". Blogs.wsj.com. Retrieved 8 January 2018.
  5. ↑ GRACE LEONG - Daily Herald (9 November 2006). "Neways sold to private equity firm". Daily Herald.
  6. ↑ "Paying the Price for J. Jill". Multichannelmerchant.com,. July 1, 2009. Retrieved 2010-09-14.
  7. ↑ CIT Provides Financing for J. Jill Acquisition - Bloomberg.com. Origin-www.bloomberg.com. Retrieved on 2014-05-23.
  8. ↑ "Press Release: California Pizza Kitchen to Be Acquired by Golden Gate Capital; Stockholders to Receive $18.50 in Cash Per Share" (PDF). Info.cpk.com. Retrieved 8 January 2018.
  9. ↑ "Wolverine Worldwide, Golden Gate Capital and Blum Capital complete acquisition of Collective Brands". Golden Gate Capital.
  10. ↑ "Darden Completes Sale Of Red Lobster To Golden Gate Capital". MarketWatch. Retrieved August 26, 2014.
  11. ↑ Greg Hilburn (November 12, 2014). "Dow sells ANGUS to private equity firm". The News-Star.
  12. ↑ Buhayar, Noah (13 May 2015). "Golden Gate Capital Backs Gass in $750 Million Reinsurance Push". Bloomberg. Retrieved 10 September 2015.
  13. ↑ "Bob Evans to sell restaurants, focus on foods business". ABC News 4. 24 January 2017.



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