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Fogo de Chao, a rapidly growing Brazilian steakhouse chain, is being acquired by Bain Capital Private Equity from current owner Rhone Capital.
Fogo de Chao said the investment will help it continue the strong growth streak started under Rhone, which acquired the chain in 2018 for $560 million. The company will retain its existing management, including CEO Barry McGowan.
Founded in Brazil in 1979 and ported to the US in 1997, Fogo de Chao offers grilled, seasoned meats cooked in a churrasco style on skewers and then sliced at the table by chefs known as gauchos. Customers can taste up to 16 different types of meat in an all-you-can-eat format at a fixed price. They can also visit the Market Table buffet, which offers a variety of soups, salads and cold cuts. About 60 of the company's 76 restaurants are located in the US.
The brand has weathered the pandemic well. According to Technomic, last year sales grew by more than 17%, and for the third year in a row, there has been a growth of 15%.
Bain Capital frequently invests in restaurants, having held shares in Bloomin' Brands, Dunkin and Domino's in the past.
The deal with Fogo will close in September. The deal is debt-financed by Deutsche Bank, which also acts as financial advisor to Bain Capital.
