GP Investments announces the closing of the sale of Fogo de Chão
GP INVESTMENTS ANNOUNCES THE CLOSING OF THE SALE OF FOGO DE CHÃO
July 22, 2012 – GP Investments, Ltd., with its head office at 129, Front Street, Penthouse,
Hamilton HM 12, Bermuda (“GP Investments”), a leading alternative asset investment firm
in Latin America, hereby announces the closing of the sale of 100% of FC Holdings, Inc., the
holding company for Fogo de Chão Churrascaria (Holdings), LLC (“Fogo de Chão” or the
“Company”), to Thomas H. Lee Partners, L.P., a private equity firm headquartered in North
America, for an Enterprise Value of US$400 million.
Fogo de Chão is a Brazilian steakhouse operator established in 1979, with 25 restaurants
today, of which 18 are in the US and seven in Brazil.
In 2006, GP Capital Partners III, L.P. (“GPCPIII”) and co-investors invested US$64.0 million
for a 35% stake in Fogo de Chão, 50% of which came from GPCPIII and 50% from coinvestors. In 2011, GPCPIII and co-investors acquired the remaining 65% of the Company,
fully financing the acquisition through a new debt facility. Overall, the investment in Fogo de
Chão resulted in a 3.5x cash-on-cash multiple and an IRR of approximately 25% in US
Dollars, in six years.
The sale will generate gross proceeds of US$204.7 million to GPCPIII and co-investors. GP
Investments, as a limited partner in GPCPIII, will receive investment proceeds of US$48.0
million, of which approximately 10% will be deposited in an escrow account, to be released
in July 2014.
The sale of Fogo de Chão is the fourth divestment of GPCPIII out of six investments made
by the fund. It underscores GP Investments’ ability to conduct successful exit strategies for
its portfolio companies independent of market conditions.
About GP Investments
GP Investments, a leading alternative asset investment firm in Latin America, has been
actively investing in the region since 1993. GP Investments has raised over US$5 billion
with a track record of 49 completed deals across 15 different sectors. In May 2006, GP
Investments concluded its IPO, becoming the first listed private equity firm in Latin
America. For more information see GP Investments’ web-site (www.gp-investments.com) or
contact the company’s media contacts.