Marshall Cogan
Encyclopedia
Marshall S. Cogan is an investor and entrepreneur and former financier and trader. Cogan was the founder of United Automotive Group, which he built into one of the largest retailers of cars and trucks in the U.S. As a private equity
investor, Cogan acquired a number of businesses in the 1970s and 1980s. He was also a partner of Cogan, Berlind, Weill & Levitt
an investment banking and brokerage firm that would be instrumental in the consolidation of the financial services industry in the 1970s.
and worked at the investment firm, Orvis & Co., before joining the investment banking and brokerage firm of Carter, Berlind & Weill as an auto sector research analyst in 1964. Cogan was soon a partner in the firm and his name replaced the departing Arthur L. Carter
in 1968 as the firm was renamed Cogan, Berlind, Weill & Levitt. Among Cogan's partners at CBWL were Sandy Weill
, later chairman and CEO of Citigroup
, Arthur Levitt
, later the head of the Securities and Exchange Commission and Roger Berlind
a noted Broadway producer and long-time member of the board of Lehman Brothers
.
In August 1973, Marshall Cogan left the firm after disputes with his fellow partners to focus on leveraged buyout
s. Cogan's first deal was the takeover of General Felt Industries (GFI) in 1974 which he completed with fellow investment banker Stephen Swid
. Cogan would then merge GFI with Knoll International
and use Knoll as a holding company
to acquire a series of businesses. Among Cogan's most notable acquisitions were takeover of the Sheller-Globe Corporation
and later the purchase of the 21 Club
. and Sheller-Globe Corporation. Cogan was unsuccessful in his high profile bids to acquire the Boston Red Sox
, Sotheby's
and L.F. Rothschild
in the buyout boom of the 1980s
.
, later known as SBK Records
. Meanwhile, Cogan bought Foamex Products, a division of Firestone Tire & Rubber. Over the next few years, Cogan continued to acquire businesses to merge with Foamex, acquiring three regional producers in 1988. Cogan merged General Felt into Foamex and acquired Great Western Foam Co., a major foam producer on the West Coast. In 1993, Cogan created Foamex International bringing together his various businesses and took the company public in December 1993. During the mid-1990s, Foamex grew to become the largest manufacturer and marketer of flexible polyurethane foam and foam products in North America.
In 1990, Cogan founded United Automotive Group, today known as Penske Automotive Group
. Under Cogan, United Auto was a leading acquirer, consolidator and operator of automobile and truck dealership franchises. Cogan merged his company with Roger Penske
's business in May 1999 after Cogan ran into financial difficulties and the company name was changed from United Automotive to Penske Automotive in 2007.
In 2006, Cogan was named to the board of Ener1
, a company that manufactures lithium-ion batteries for plug-in hybrid vehicles.
.
Cogan graduated from Harvard College
in 1959 and received his MBA from Harvard Business School
. Cogan is also an alumnus and benefactor of the Boston Latin School
having graduated in 1955.
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....
investor, Cogan acquired a number of businesses in the 1970s and 1980s. He was also a partner of Cogan, Berlind, Weill & Levitt
Cogan, Berlind, Weill & Levitt
Cogan, Berlind, Weill & Levitt, originally Carter, Berlind, Potoma & Weill, was an American investment banking and brokerage firm founded in 1960 and acquired by American Express in 1981. In its two decades as an independent firm, Cogan, Berlind, Weill & Levitt served as a vehicle for the rollup...
an investment banking and brokerage firm that would be instrumental in the consolidation of the financial services industry in the 1970s.
Early career
Cogan started his career CBSCBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
and worked at the investment firm, Orvis & Co., before joining the investment banking and brokerage firm of Carter, Berlind & Weill as an auto sector research analyst in 1964. Cogan was soon a partner in the firm and his name replaced the departing Arthur L. Carter
Arthur L. Carter
Arthur L. Carter is an investment banker, publisher, and artist.He graduated from Brown University in 1953 with a degree in French literature....
in 1968 as the firm was renamed Cogan, Berlind, Weill & Levitt. Among Cogan's partners at CBWL were Sandy Weill
Sanford I. Weill
Sanford I. "Sandy" Weill is an American banker, financier and philanthropist. He is a former chief executive officer and chairman of Citigroup. He served in those positions until October 1, 2003, and April 18, 2006, respectively....
, later chairman and CEO of Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
, Arthur Levitt
Arthur Levitt
Arthur Levitt, Jr. was the twenty-fifth and longest-serving Chairman of the United States Securities and Exchange Commission from 1993 to 2001. Widely hailed as a champion of the individual investor, he has been criticized for not pushing for tougher accounting rules. Since May 2001 he has been...
, later the head of the Securities and Exchange Commission and Roger Berlind
Roger Berlind
Roger S. Berlind is a New York City theatrical producer and director of Lehman Brothers Holdings, Inc. and Lehman Brothers Inc...
a noted Broadway producer and long-time member of the board of Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
.
In August 1973, Marshall Cogan left the firm after disputes with his fellow partners to focus on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
s. Cogan's first deal was the takeover of General Felt Industries (GFI) in 1974 which he completed with fellow investment banker Stephen Swid
Stephen Swid
Stephen Swid an American businessman and investor. He currently serves as the Chairman and Chief Executive Officer of SESAC, Inc., one of the three performing rights organizations in the USA....
. Cogan would then merge GFI with Knoll International
Knoll (company)
Knoll is a design firm that produces office systems, seating, files and storage, tables and desks, textiles , and accessories for office and for the home. The company also manufactures furniture for the home by Ludwig Mies van der Rohe, Harry Bertoia, Florence Knoll , Frank Gehry, Maya Lin and...
and use Knoll as a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
to acquire a series of businesses. Among Cogan's most notable acquisitions were takeover of the Sheller-Globe Corporation
Sheller-Globe Corporation
Sheller-Globe Corporation was a U.S. auto parts manufacturer and industrial conglomerate based in Toledo, Ohio. Formed in 1966 on a heritage of much older companies, Sheller-Globe grew through the acquisition of many other businesses before it was acquired by United Technologies Corporation in...
and later the purchase of the 21 Club
21 Club
The 21 Club, often simply 21, is a restaurant and former prohibition-era speakeasy, located at 21 West 52nd Street in New York City.-Environment:...
. and Sheller-Globe Corporation. Cogan was unsuccessful in his high profile bids to acquire the Boston Red Sox
Boston Red Sox
The Boston Red Sox are a professional baseball team based in Boston, Massachusetts, and a member of Major League Baseball’s American League Eastern Division. Founded in as one of the American League's eight charter franchises, the Red Sox's home ballpark has been Fenway Park since . The "Red Sox"...
, Sotheby's
Sotheby's
Sotheby's is the world's fourth oldest auction house in continuous operation.-History:The oldest auction house in operation is the Stockholms Auktionsverk founded in 1674, the second oldest is Göteborgs Auktionsverk founded in 1681 and third oldest being founded in 1731, all Swedish...
and L.F. Rothschild
L.F. Rothschild
L.F. Rothschild was a merchant and investment banking firm based in the United States and founded in 1899. The firm collapsed following the 1987 stock market crash.-History:...
in the buyout boom of the 1980s
Private equity in the 1980s
Private equity in the 1980s relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel although interrelated tracks.The...
.
Foamex and United Auto
Cogan began building what would become Foamex International in the mid-1980s after the departure of his long-time partner Stephen Swid. Swid would go on to acquire the music publishing division of CBS RecordsCBS Records
CBS Records is a record label founded by CBS Corporation in 2006 to take advantage of music from its entertainment properties owned by CBS Television Studios. The initial label roster consisted of only three artists; rock band Señor Happy and singer/songwriters Will Dailey and P.J...
, later known as SBK Records
SBK Records
SBK Records was a record label of the EMI Group that was founded in 1988.Stephen Swid, Martin Bandier, and Charles Koppelman formed the production company SBK in 1989 after they purchased the music publishing division of CBS Records in 1986....
. Meanwhile, Cogan bought Foamex Products, a division of Firestone Tire & Rubber. Over the next few years, Cogan continued to acquire businesses to merge with Foamex, acquiring three regional producers in 1988. Cogan merged General Felt into Foamex and acquired Great Western Foam Co., a major foam producer on the West Coast. In 1993, Cogan created Foamex International bringing together his various businesses and took the company public in December 1993. During the mid-1990s, Foamex grew to become the largest manufacturer and marketer of flexible polyurethane foam and foam products in North America.
In 1990, Cogan founded United Automotive Group, today known as Penske Automotive Group
Penske Automotive Group
Penske Automotive Group , headquartered in Bloomfield Hills, Michigan, is the world's second largest automotive dealership group.PAG operates 327 retail automotive franchises, representing 42 different brands, and 26 collision repair centers. PAG is a member of the Fortune 500 and Russell 2000, and...
. Under Cogan, United Auto was a leading acquirer, consolidator and operator of automobile and truck dealership franchises. Cogan merged his company with Roger Penske
Roger Penske
Roger S. Penske is the owner of the automobile racing team Penske Racing, the Penske Corporation, and other automotive related businesses. A winning racer in the late 1950s, Penske was named 1961's Sports Car Club of America Driver of the Year by Sports Illustrated...
's business in May 1999 after Cogan ran into financial difficulties and the company name was changed from United Automotive to Penske Automotive in 2007.
Bankruptcy of Trace International
In July 1999, Cogan's holding company, Trace International Holdings filed for bankruptcy protection. Cogan had used Trace International to hold his controlling interests in two publicly listed companies, Foamex International and United Automotive Group. Trace had pledged its stock in the two companies as collateral for certain loans. After declines in the value of Foamex and United Auto Group in 1998 and 1999, Trace became insolvent as the value of its assets fell below the debt it owed. In 2003, Cogan and several directors of Trace would be accused of having drained cash from Trace International. Cogan was found by second circuit court of Delaware not guilty of all charges on June 25, 2005.In 2006, Cogan was named to the board of Ener1
Ener1
Entrepreneur Mike Zoi and Scientist Peter Novak founded Ener1 in 2001 to develop energy storage technology company that develops compact, lithium-ion-powered battery solutions for the transportation, utility grid and industrial electronics markets. Headquartered in New York City, the company has...
, a company that manufactures lithium-ion batteries for plug-in hybrid vehicles.
Other affiliations
Cogan has also served as Chairman and Director of Color Tile, Inc., Knoll International and Sheller-Globe CorporationSheller-Globe Corporation
Sheller-Globe Corporation was a U.S. auto parts manufacturer and industrial conglomerate based in Toledo, Ohio. Formed in 1966 on a heritage of much older companies, Sheller-Globe grew through the acquisition of many other businesses before it was acquired by United Technologies Corporation in...
.
Cogan graduated from Harvard College
Harvard College
Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...
in 1959 and received his MBA from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
. Cogan is also an alumnus and benefactor of the Boston Latin School
Boston Latin School
The Boston Latin School is a public exam school founded on April 23, 1635, in Boston, Massachusetts. It is both the first public school and oldest existing school in the United States....
having graduated in 1955.