23 September 2008, São Paulo - Advent International, the global private equity firm, today announced that it has acquired 100% of Frango Assado, the leading operator of highway restaurants in Brazil, from the founding families. The names of the families and value of the transaction were not disclosed.
Founded in 1952, Frango Assado (which means “grilled chicken” in Portuguese) operates 12 large-format restaurants and retail stores along the busiest roadways in São Paulo. The company is projecting sales of over US$120 million in 2008 and expects to serve more than 20 million customers this year.
The deal is the third Latin American investment announced by Advent this month, following its acquisitions of Aeropuertos Dominicanos Siglo XXI SA (“Aerodom”), the leading airport group in the Dominican Republic, and Quero-Quero, a leading home-improvement retailer in southern Brazil.
It is also Advent’s sixth acquisition of a restaurant chain in Latin America in the past two years and an important milestone in the firm’s strategy to consolidate the region’s fragmented, high-growth restaurant and casual dining segment.
Advent is forming a new company, International Meal Company (IMC), to hold all of its investments in the sector. In addition to Frango Assado, these include: Viena, Brazil’s leading quick-casual and casual dining restaurant chain; Grupo RA, the No. 1 operator of restaurant concessions in Brazil’s main airports; La Mansión, a leading casual dining restaurant group in Mexico; Champs Elysées, a Mexican operator of French restaurants and bistros; and IMC Caribe (formerly Airport Shoppes), the leading airport restaurant and in-flight catering group in Puerto Rico.
Once the businesses are consolidated into IMC, it will be the largest casual dining restaurant group in Latin America, operating more than 160 restaurants in Brazil, Mexico and the Caribbean, employing over 7,000 people and generating revenue of US$380 million this year.
“Frango Assado is a great addition to our portfolio, because it marks our entry into the highway segment, building on our presence in airports, shopping malls and city centers,” said Javier Gavilán, CEO of IMC. “It’s a prime example of the type of restaurant chains we look to acquire: fast-growing, cash-generative businesses in premium locations with long-term contracts, strong local brands and significant expansion potential.”
Valmik Mamprin, Director of Frango Assado, said, “We are extremely pleased to partner with Advent and believe that becoming part of the larger IMC group will offer significant benefits to Frango Assado. These include joint purchasing power, sharing of operational best practices, economies of scale and, most importantly, the opportunity to expand the Frango Assado concept into other market segments and geographies where Advent’s restaurant companies operate.”
Mr. Gavilán added: “With Frango Assado, Advent has achieved critical mass and established itself as the premier consolidator of casual dining restaurants in Latin America. Looking ahead, we have an active pipeline of additional M&A targets and plan to continue expanding the network organically through new store openings.”