OpenGate anticipates buying a Brazilian technology company, a German magazine, and a northern European paper mill, all with annual sales of at least $50 million, he said in a telephone interview today. It announced plans today to buy London-based Nicole Farhi for as much as 5 million pounds ($7.5 million) from French Connection Group Plc.
OpenGate is seeking to acquire “neglected divisions of publicly traded companies” with prices down in the recession, Nikou said. The company, which bought TV Guide magazine in 2008 for $1 from Macrovision Solutions Corp., is seeking well-known names that it can expand, he said.
“This is a once-in-a-life time opportunity over the next 24 months,” said Nikou, also founder of the Los Angeles- and Paris-based firm. “It’s a tremendous opportunity to acquire brands with which you can build a multiple of scale, at a discount.”
About $12.9 billion of private-equity deals have been announced over the past three months, compared with $2.5 billion in the year-earlier period, according to Bloomberg data.
OpenGate wants to expand Nicole Farhi’s retail network in Paris, Hong Kong, Tokyo and New York, plus sign new licensing deals and increase Web sales, Nikou said. It also plans to buy other fashion labels to complement it, he said.
Farhi, who founded the label in 1982, will stay as creative director, while Managing Director Niki Scordi becomes chief executive officer, OpenGate said.
Nicole Farhi generated an operating loss of 5.6 million pounds on sales of 21.7 million pounds in the year ended Jan. 31, London-based French Connection said in its own statement.
OpenGate also owns a stake in Models One Ltd., which represents Linda Evangelista and Agyness Deyn, and purchased childrens’ publishers Fleurus Presse and Junior Hebdo from Groupe Le Monde.
By David Altaner
--Editors: Peter Branton, Andrew Clapham