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Rhône to acquire Fogo de Chao in USD560m deal

Affiliates of private investment firm Rhône Capital are to acquire Brazilian steakhouse chain Fogo de Chão in an all cash transaction valued at USD560 million.

The Company’s stockholders will receive USD15.75 per share, representing a 25.5 per cent premium to the closing share price of the Company’s shares on 16 February, 2018.
“After a thorough evaluation of the options available, the Board of Directors is confident that this transaction will provide Fogo a significant opportunity to realize the highest value for our stockholders while providing the best path forward for the Fogo de Chão brand, employees, and loyal customers,” says Larry Johnson, Chief Executive Officer of Fogo de Chão, Inc. “We are excited to enter into a new chapter for the Company and confident that Rhône will be an invaluable partner as they have a proven and distinguished track record of supporting and driving profitable growth for companies around the world.”
The transaction is the result of a comprehensive strategic alternatives review process taken by the Company’s Board of Directors. The transaction has been unanimously approved by Fogo’s Board of Directors. Funds affiliated with Thomas H Lee Partners, and certain of Fogo’s directors and executive officers, which collectively hold more than 60 per cent of Fogo’s shares, have approved the transaction by written consent. The acquisition is expected to be completed during the second calendar quarter of 2018, subject to regulatory approvals and other customary closing conditions.
“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. We look forward to working with Fogo’s management team to drive value for the Company, employees, and customers in this new chapter for the brand,” says Eytan Tigay, Managing Director of Rhône.

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