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A. Gary Klesch (born 1947) is an Anglo-American entrepreneur, who in 1990 founded the Klesch Group, a global industrial company, based in Geneva, Switzerland, which he owns and chairs.[1][2] The Klesch Group of companies has interests in metals, mining, oil and gas, power generation, chemicals and other traditional "heavy" industries. Klesch specializes in principal investing in companies that are operating below their full potential.[3]
Early life
editKlesch was born in Cleveland, Ohio in 1947 and educated by Jesuits. He graduated from John Carroll University in 1968 with a B.A. in Political Science.[4]
Career
editIn 1969, aged 22, Klesch joined McDonald & Company,[5] then one of the largest regional investment banking firms, based in Cleveland, Ohio, as an associate. Two years later, aged 24, Klesch was made McDonald & Company's youngest-ever Partner.[6]
Klesch then came to the attention of Bill Simon, who had just been appointed Secretary of the Treasury under President Gerald Ford, and in 1975, aged 28, he was appointed Director of Capital Markets Policy.[4] In this role he contributed to the development of a new model of financial regulation. Klesch's responsibilities included developing the legislation that set in motion the deregulation of the securities and financial services industries in the United States. Whilst at the Treasury Department, Klesch also served as the Ford Administration's representative in negotiations leading to US Government loans and guarantees to various financially troubled entities, including Lockheed and New York City. He also served as the US Government's representative on the Board of the United States Railway Association, where he played a role in the negotiation and reorganization of troubled railroad companies, most notably the Penn Central Corporation.[7] Additionally, he was responsible for finding private finance for the space shuttle.[8]
In 1978, after two and half years in Washington, Klesch took a sabbatical and then joined the management of Smith Barney Harris Upham & International Smith Barney Harris Upham & Company, Inc. | Better Business Bureau Profile, the Wall Street securities house, in Paris. He was the Director responsible for Middle East development.
In 1980, he was appointed President of the brokerage firm Dean Witter Reynolds Overseas Ltd.[9] in London, where he was responsible for the firms' international activities. Two years later Klesch left to create his own investment company.[10]
Quadrex
editIn 1983, Klesch set up[11] Quadrex, which started in the Euromarkets but soon moved into acquisition finance, leverage buyouts and restructurings.[12] The firm had operations in both London and New York. Quadrex Holdings first subsidiary, Quadrex Securities Ltd. specialized in international financial transactions.[13]
Klesch Group
editIn 1990, Klesch founded Klesch & Company Limited to specialize in distressed and turnaround investing.[14] Klesch & Co today invests in industrial businesses and refines, markets and sells petroleum products and financial derivates.[15] It employs 1,000 people across 6 locations in 4 countries. In 2023, the Group had turnover of €8.5 billion.[16]
Corporate activity
edit- 1993: acquisition of DAF Dutch truck manufacturer[17]
- 1996: acquisition of TC Farries, Scottish bookseller[18]
- 1998: acquisition of Knickerbox, a British lingerie chain, and of Myrys, a French shoemaker[18]
- 2009: acquisition of Delfzijl steelworks in Netherlands[19] and of Heide refinery in Germany (from Shell) [20]
- July 2012: acquisition of Kem One, vinyls activities of the French Arkema Group[21]
- February 2013: acquisition of Groupe Leali,[22] an Italian steel producer[23]
- January 2022: acquisition of Kalundborg Refinery and its terminal located in Hedehusene in Denmark (from Equinor)[24]
Criticism
editKlesch has been described in the media as a “vulture capitalist” due to a history of investing in struggling businesses and slashing costs. [25]
In 2012, Klesch & Co bought the vinyl business division of Arkema for one symbolic euro. Once the acquisition went through the company was renamed ‘Kem One S.A.’. 8 months after the acquisition, the company was declared insolvent putting 1,300 jobs at risk[26] until in December 2013, when industrialist Alain de Krassny agreed to take over the business in association with OpenGate, a global fund. [27]
The events involving Klesch and Arkema were later referenced by employees at a steel factory in Sardinia owned by Alcoa as they protested against reports that Klesch & Co were exploring a possible takeover. [28]
References
edit- ^ "Bloomberg stocks". www.bloomberg.com. Retrieved 11 November 2022.
- ^ "The Klesch Group website, Overview".
- ^ "The Klesch Group website, Gary Klesch's bio".
- ^ a b "A. Gary Klesch". www.bloomberg.com. Archived from the original on 14 April 2016. Retrieved 11 November 2022.
- ^ [American in London, July 1990, Profile, Klesch In The Flesh]
- ^ "Spinning debts into gold: Recession has been the renaissance of Garry". The Independent. 15 May 1993. Retrieved 11 November 2022.
- ^ [Institutional Investor, December 1987, What makes Gary Klesch run?]
- ^ "Dealing in duds". The Economist. ISSN 0013-0613. Retrieved 11 November 2022.
- ^ [Financial Weekly, 8–14 January 1987, The Rise and Rise of Gary Klesch]
- ^ "BUSINESS PEOPLE; A Top Officer Resigns At Dean Witter Unit". The New York Times. 26 November 1982 – via NYTimes.com.
- ^ [Financial Times, 6 January 1983, Former Dean Witter men to start securities house]
- ^ [Securities Week, 28 February 1983, New Investment Banker Opens Doors Eyeing Transaction-Orientated Deals]
- ^ [Financial Times, 10 August 1983, Quadrex sponsored issue not subscribed]
- ^ Julius Falkengaard, Mathias (7 January 2022). "US business mogul, known in the 80s as a vulture capitalist, plans green overhaul of Danish oil facility". EnergyWatch. Retrieved 10 July 2024.
- ^ Solsvik, Terje (10 June 2021). "Equinor sells its Danish refinery to Klesch Group". Reuters. Retrieved 15 July 2024.
- ^ "Home". www.klesch.com. Retrieved 22 July 2024.
- ^ Harrison, Michael (14 April 1993). "Leyland DAF deal 'in its final stages': Hopes rise for conclusion soon as MBO team examines offers of funding from City". Independent. Retrieved 10 July 2024.
- ^ a b "Dealing in duds". The Economist. ISSN 0013-0613. Retrieved 11 November 2022.
- ^ Thomas, Susan (7 January 2014). "Dutch aluminium smelter Aldel applies for bankruptcy". Reuters. Retrieved 10 July 2024.
- ^ "About Us". www.heiderefinery.com. Retrieved 10 July 2024.
- ^ "Arkema finalized the divestment of its Vinyl Products segment". www.arkema.com. Retrieved 10 July 2024.
- ^ "Klesch Group inks pact to Italian steel makers the Leali Group". Steel Guru. Retrieved 10 July 2024.
- ^ "Klesch inks deal to buy italian special steel producer Leali Group". SteelOrbis. 22 February 2013. Retrieved 10 July 2024.
- ^ "Equinor selling its refining business in Denmark to Klesch". www.equinor.com. Retrieved 10 July 2024.
- ^ Neher, Jacques; Tribune, International Herald (20 June 1994). "Financial Vulture Cashes In". The New York Times. ISSN 0362-4331. Retrieved 11 November 2022.
- ^ Lagrange, Catherine (27 March 2013). "Spun-off Arkema unit begins bankruptcy proceedings". Reuters.
- ^ Charbonnier, Vincent (27 January 2014). "Alain de Krassny, the alchemist of Kem One". Les Echos. Retrieved 24 October 2024.
- ^ "Alcoa, i sindacati: "Accelerare la trattativa per la vendita a Klesch", Regione – News – Cagliaripad". 29 October 2013. Archived from the original on 29 October 2013. Retrieved 11 November 2022.