Rhône Capital announced Tuesday that the private equity group sold Brazilian steakhouse chain Fogo de Chão to Bain Capital Private Equity for an undisclosed amount after five years of ownership.
The churrasco chain is now in its third year of 15% annual growth, and CEO Barry McGowan will stay on to helm the brand as Fogo de Chão looks to continue growing and expanding globally under new ownership.
“Over the past several years, we made significant progress enhancing our unique offering and ability to bring the very best in experiential dining to more guests than ever before,” McGowan said in a statement. “We thank the Rhône team for their partnership during a critical and successful period in our history. Bain Capital shares our vision, and we are excited to leverage their extensive experience investing in and supporting the global growth of restaurant businesses. We are excited by this next chapter and believe there is tremendous upside in our future as we continue to execute against our growth plans with Bain Capital.”
The sale of the company is expected to close in September, subject to customary closing conditions, including requisite regulatory approvals. Deutsche Bank is leading debt financing and financial advisership for Bain Capital. PwC is serving as accounting advisor, and Kirkland & Ellis is serving as legal counsel to Bain Capital. Morgan Stanley & is serving as exclusive financial advisor for the deal, while Deloitte is serving as accounting advisor and Sullivan & Cromwell is acting as legal counsel to Fogo de Chão and Rhône.
“Barry and his team have done an impressive job building on the brand’s differentiated concept, strong value proposition, and rich Brazilian heritage,” Adam Nebesar, a partner at Bain Capital said in a statement. “Fogo is the clear market leader, and we believe the business is poised to continue its rapid growth as consumers increasingly seek unique and authentic dining experiences.”