GP Investments to Sell Fogo de Chão (Latin America)

Source: GP Investments

GP Investments, an alternative asset investment firm in Latin America, has reached an agreement to sell 100 percent of FC Holdings, the holding company for Brazilian steakhouse Fogo de Chão Churrascaria, to U.S.-based private equity firm Thomas H. Lee Partners for an enterprise value of US$400 million. In partnership with co-investors, GP Investments acquired a 35 percent stake in Fogo de Chão in 2006 through its third fund and subsequently purchased the remainder of the company in 2011. GP Investments expects to generate a cash-on-cash multiple of approximately 3.4x from the sale, with a 25 percent estimated IRR.