Global alternative investment management firm Rhône has entered into an agreement to acquire Brazilian steakhouse Fogo de Chão for $560m in cash.
Under the terms of the deal, Fogo stockholders will receive $15.75 per share, representing a 25.5% premium to the closing share price of the company’s shares on 16 February 2018.
Rhône managing director Eytan Tigay added: “We look forward to collaborating with Fogo and its talented management team to continue the growth of this exceptional business. The Fogo experience offers consumers an unsurpassed combination of quality and value in an authentic Brazilian churrascaria environment.
“We believe our firm’s global experience, relationships, and longstanding and expanding presence in Brazil is a natural complement to the company and will serve to facilitate Fogo’s domestic and international expansion plans.”
Unanimously approved by Fogo’s Board of Directors, the transaction is expected to be completed during the second quarter of 2018 following the receipt of regulatory approvals and other customary closing conditions.
Jefferies acted as financial advisor to Fogo de Chão while Davis Polk & Wardwell and Weil, Gotshal & Manges as legal counsel.
J.P. Morgan Securities served as financial advisor and Sullivan & Cromwell as legal advisor to Rhône.
Fogo de Chão menu includes a variety of seasoned and fire-roasted meats including beef, lamb, pork and chicken, seasonal salads, soup and fresh vegetables, seafood, desserts, signature cocktails and an award-winning wine list.
The company operates 38 restaurants in the US, nine in Brazil, two joint venture restaurants in Mexico, and two joint venture restaurants in the Middle East (Jeddah, Saudi Arabia and Dubai).