Alvarez & Marsal Capital Acquires Gabriel Brothers in Partnership with Gabriel Family
March 21, 2012, GREENWICH, CT –Alvarez & Marsal Capital (“A&M Capital”), a middle-market private equity firm that has a strategic association with Alvarez & Marsal (“A&M”), announced today that it has acquired a controlling majority interest in Gabriel Brothers, Inc. (“Gabes” or the “Company”), a leading retailer of deep discount “off-price” apparel, footwear and household goods. The Gabriel family, which has owned and operated Gabes since its inception in 1961, rolled over into a significant minority position and will retain representation on the Company’s Board of Directors.
Based in Morgantown, WV, the Company operates 100 stores under the Gabriel Brothers and Rugged Wearhouse banners across 11 states in the Mid-Atlantic, Midwest and Southeast regions. Gabes’ stores sell leading brands at up to 70% off department store prices by buying closeouts and over-runs from apparel manufacturers and retailers, with whom the Company has built deep and long-standing relationships that in many cases span several decades.
“We are excited to partner with A&M Capital and see great things for the Company in the years to come,” said Arthur Gabriel, Sr., co-founder of Gabriel Brothers. “While the decision to sell our family business was a difficult one, we could be not happier with the partner we have chosen and believe they can help the Company grow to new heights.”
“Gabriel Brothers represents an ideal transaction for our firm,” said Kurt Kaull, Partner at A&M Capital. “It was a proprietary transaction with no formal process and offered a compelling combination of longevity / stability on the one hand and performance improvement opportunities on the other. The Gabriel family has built an exceptional business centered around delivering tremendous value to its customers, and we look forward to working with them and our colleagues at A&M to maximize the Company’s potential.” A&M Capital was advised by Kirkland & Ellis. Gabriel Brothers was advised by K&L Gates.
About Gabriel Brothers
Gabriel Brothers, Inc., founded in 1961, is a private discount retailer headquartered in Morgantown, West Virginia. The company operates 37 Gabriel Brothers stores in 50,000-sq. ft. formats throughout Kentucky, Maryland, Ohio, Pennsylvania, Virginia, and West Virginia. Additionally, the company operates 63 Rugged Wearhouse stores in smaller 12,000-sq. ft. formats in Delaware, Georgia, Kentucky, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee, and Virginia. The Company sells designer brands and fashions for up to 70% off department and specialty store prices. Their stores carry designer brand name ladies, juniors, lingerie, men’s and children’s apparel, along with footwear, accessories, handbags, bath and beauty products, home décor, soft home, and housewares.
About A&M Capital
A&M Capital is a middle-market private equity firm which invests in established and profitable companies that can benefit from the firm’s access to significant operating resources. The firm has a strategic association with Alvarez & Marsal (“A&M”), which gives it the distinctive capability to bring the exact management or operational talent to the companies with which they partner, whether interim, part-time or permanent management assistance is required. As such, their experience with various kinds of businesses and ownership profiles allows them to meet sellers’ objectives with win-win transactions that specifically address the goals of existing shareholders. The principals of A&M Capital have a combined 70 years of experience executing private equity transactions in the middle-market with this profile.
About A&M
Alvarez & Marsal was founded in 1983 and is a privately-owned global professional services firm that helps businesses improve performance, solve problems, and unlock value for stakeholders. With more than 1,600 full-time professionals in 40 + offices across North America, Europe, the Middle East, Asia and Latin America, A&M is the largest firm of its kind and has expertise across all major industry sectors and functional areas.