Fogo de Chão, a rapidly growing Brazilian restaurant chain, is being acquired by Bain Capital Private Equity from current owner Rhône Capital.

In an Aug. 15 press release announcing the agreement, the parties did not disclose financial terms but said the transaction is expected to close next month.

Now in its third year of 15% annual growth, Fogo said its chief executive officer, Barry McGowan, will stay on to helm the brand as the chain looks to continue growing globally under the new ownership.

In a statement, McGowan said, “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. 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,” he stated.

Deutsche Bank is leading debt financing and financial advisership for Bain Capital, while PwC is serving as accounting advisor and Kirkland & Ellis is serving as legal counsel.

Morgan Stanley & Co LLC is serving as exclusive financial advisor for the deal; Deloitte is the accounting advisor and Sullivan & Cromwell is acting as legal counsel to Fogo de Chão and Rhône, according to the press release.

The acquisition is not expected to impact Fogo’s growth plans for New Jersey, a company spokesperson told NJBIZ.

After its successful in-state debut in February at Westfield Garden State Plaza in Paramus, the chain plans on opening restaurants at Willowbrook Mall in Wayne later this year and Bridgewater Commons in Bridgewater by early 2024. 

Founded in 1979, Fogo de Chão serves grilled, seasoned meats cooked churrasco-style on skewers and then carved at the table by the chefs, known as gauchos. Its menus for lunch, dinner, weekend brunch and group dining also feature chicken, lamb, pork, seafood and salads.

The Dallas-headquartered concept has since grown to 70-plus restaurants throughout the United States and Puerto Rico, Brazil, Mexico, Dubai and Saudi Arabia, including a flagship in New York City.

After being acquired five years ago by global private equity firm Rhône for $560 million, Fogo experienced rapid growth across markets as the two “embarked on a new chapter to refine the … concept and experience,” said Lucas Flynn, managing director at Rhône.

“Despite the challenges the restaurant industry has faced in the last few years, we collaborated with Fogo’s talented leadership team to strengthen an already exceptional business while successfully executing an ambitious expansion plan across the U.S. and internationally,” Flynn said.

Restaurant Business Online noted the deal with Bain Capital marks a change of course for the chain, which appeared to be gearing up for an initial public offering earlier this year.

A frequent restaurant investor, Bain Capital has a long history of partnering with companies to accelerate growth and has had past holdings in businesses including Domino’s Pizza, Burger King, Dunkin’ and Bloomin’ Brands.

Mark Saadine, a principal at Bain Capital, said, “We look forward to partnering with Barry and team, and supporting them with our experience and resources to help accelerate growth while maintaining Fogo’s distinctive authenticity.”