PRIVATE EQUITY FIRM WARBURG PINCUS ACQUIRES OFF-PRICE RETAILER GABRIEL BROTHERS

Global private equity firm Warburg Pincus has agreed to acquire off-price retailer Gabriel Brothers, Inc. As part of the transaction, Alvarez & Marsal Capital, the company’s current majority owner, will exit its stake in the company. Terms of the transaction were not disclosed.

Gabe’s, formerly known as Gabriel Brother’s, operates 106 stores under the Gabe’s and Rugged Wearhouse banners across 11 states in the Mid-Atlantic and Southeast. The company sells leading apparel, footwear, accessories, and home brands at up to 70 percent off department and specialty store prices. The company was founded in 1961 by the Gabriel family and is headquartered in Morgantown, West Virginia.

“Gabe’s is a leading retailer with a strong and growing customer base,” said Annette Rodriguez, managing director of 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.”

“Alvarez & Marsal Capital has enjoyed 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,” added Kurt Kaull, managing director of Alvarez & Marsal Capital. “We believe that the Company’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.”

UBS Investment Bank and Wells Fargo Securities acted as financial advisors to Warburg Pincus. Jefferies LLC acted as financial advisor to Alvarez & Marsal Capital.