Private equity firm Warburg Pincus LLC said “funds affiliated with the firm” have acquired off-price apparel and home goods retailer Gabriel Brothers Inc. for an undisclosed sum.
“As part of the transaction, Alvarez & Marsal Capital, the [retailer’s] current majority owner, will exit its stake in the company,” Warburg Pincus said. UBS Investment Bank and Wells Fargo Securities were financial advisers to Warburg Pincus while Jefferies LLC served as the financial adviser to Alvarez & Marsal Capital.
“Gabe’s is a leading retailer with a strong and growing customer base,” said Annette Rodriguez, managing director at Warburg Pincus. “As consumer preference continues to shift from traditional department stores to off-price retailers, we see a compelling market opportunity to grow the business through new store openings and expansion into new regions.”
Gabe’s, which was formerly known as Gabriel Brother’s, was founded in 1961 by the Gabriel family. It’s based in Morgantown, W. Va. Currently, it operates 106 stores in 11 states — mostly in the mid-Atlantic region — under the Gabe’s and Rugged Wearhouse monikers. Its primary categories include fashion apparel, footwear and accessories as well as home goods. The retailer offers consumers up to 70 percent off price points found at department and specialty apparel stores.
Kurt Kaull, managing director at Alvarez & Marsal Capital, said the firm had a “successful partnership with the Gabriel family, current senior management and all of the Gabe’s employees in leveraging the company’s strong brand and store concept to drive significant growth throughout the period of our investment.”
Kaull went on to note that he believes that the retailer’s “attractive value proposition, strong team and significant customer loyalty will serve as a strong basis for continued growth as Gabe’s transitions to new ownership.”
Warburg Pincus has more than $40 billion in private equity assets under management with an active portfolio of more than 130 companies. In the retail and consumer goods sector, some of its current and former investments include: Glansaol, Neiman Marcus, Poundland, Reiss, Wanse, and Kalyan Jewellers, among others such as the Intime Department Store Group.