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Plano-based Brazilian steakhouse chain Fogo de Chão sold to Bain Capital - The Dallas Morning News

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The international Brazilian steakhouse chain Fogo de Chão, known for its churrasco-style meats that are carved at the table by chefs, is trading hands.

Rhône Capital, a private equity firm with brands like Wahoo, Illy and Baker & Baker in its portfolio, is selling the 76-location restaurant brand to Bain Capital Private Equity, according to a press statement.

Despite a challenging few years for dining, McGowan said that the chain of restaurants was able to seat more guests than ever before. Under Rhône’s ownership, Fogo de Chão experienced growth across markets and is in its third year of 15% annual growth.

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Funds affiliated with Rhône bought the steakhouse company for $560 million and took the chain private in 2018.

Following a healthy recovery from the pandemic, Fogo had prepared to return to the trading markets in 2021 to see if investors would bite. Other large restaurant chains at the time, like Panera Brands, Krispy Kreme and Dutch Bros. were also trying their luck.

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Fogo de Chão said it was ready to grow into a 300-restaurant chain over the next 20 years in the U.S. and tack on 250 international franchises, in a 2021 IPO filing. The Plano-based chain filed documents for an initial stock offering on the New York Stock Exchange under the ticker FOGO.

Under Bain’s ownership, the chain will continue to operate under its current management with CEO Barry McGowan at the helm.

The transaction is slated to close in September. While the cost of the sale has not been disclosed, debt financing for the transaction is being led by Deutsche Bank.

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“Bain Capital shares our vision, and we are excited to leverage their extensive experience investing in and supporting the global growth of restaurant businesses,” McGowan said.

Bain has a history of partnering with consumer and retail companies including restaurant chains like Burger King, Domino’s Pizza and Dunkin’ Brands.

“Barry and his team have done an impressive job building on the brand’s differentiated concept, strong value proposition, and rich Brazilian heritage,” said Adam Nebesar, a partner at Bain Capital. “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.”

There are three locations across Dallas-Fort Worth, including one in Uptown, Addison and Plano.

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