GP Slices off Steakhouse

On a day that saw a number of M&A deals in the region, GP Investments has agreed to sell the Fogo de Chao Churrascaria Holdings restaurant unit to US private equity firm Thomas H. Lee Partners for $400m, it says. The Brazilian private equity firm says the price represents 3.4x what it spent on a 35% stake in 2006 and the acquisition of the remainder last year. The investment has returned 25% overall, GP says. The sale – an example of the increasing trend of PE to PE exits in the region, which managers see as a sign of maturity – is expected to close in Q3. The Brazilian steakhouse operator had 9 locations in 2006, and now operates 25, in Brazil and the United States.