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Gabriel Brothers Acquired by Warburg Pincus

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Off-price is appealing to consumers—and investors—these days.

Retailer Gabriel Brothers Inc., known throughout the Mid-Atlantic and Southeast as a destination for deeply discounted goods, has been acquired by private equity firm Warburg Pincus. Current majority owner, Alvarez & Marsal Capital, will exit its stake. Details of the transaction were not disclosed.

The Morgantown, West Virginia-based company, which includes the Gabe’s and Rugged Wearhouse nameplates, operates 106 locations in 11 states. It’s known for offering up to 70 percent off on its selection of name brand soft goods, accessories and small electronics.

“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.”

Kurt Kaull, managing director of Alvarez & Marsal Capital, expects the company to enjoy continued success, citing Gabriel Brothers’ “significant growth” during the term of its investment.

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

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