Brentwood Grabs Z Gallerie

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Brentwood Associates has purchased a majority stake in Z Gallerie, a retailer that sells home goods, including furniture, artwork, lighting, tabletop items, textiles and decorative accessories.

The Los Angeles private equity firm tapped into its fifth fund, Brentwood Associates Private Equity V LP — a $260 million fund raised in 2013 — to complete the deal.

Terms of the transaction remain undisclosed.

Z Gallerie’s founders — siblings Carole Malfatti, Joe Zeiden and Mike Zeiden — will retain a significant stake in the Gardena, California-based target. Z Gallerie, a 35-year-old business, originally opened as a poster shop before growing into a home decorating and furnishings retailer.

Currently, the company operates 55 retail locations across 20 states, and has a rapidly growing e-commerce business through its website.

“We see a significant opportunity to accelerate growth of the current retail store base, while also dramatically increasing the company’s direct marketing efforts, both online and offline,” says Brentwood partner Steve Moore.

BMO Capital Markets advised Z Gallerie throughout the sale process, while Jeffrey Cohen and Andrew Garelick, partners of law firm Skadden Arps Slate Meagher & Flom LLP, handled legal matters.

Brentwood was represented by Greenberg Traurig LLP on the transaction. Kirkland & Ellis LLP andKeyBanc Capital Markets Inc. provided debt financing.

For more coverage on the retail sector, see Retail Companies Attract High Multiples and Boutique Appeal.

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