Blockbuster deal valued at R$2bn; plan aims to double restaurant locations.
Vinci Partners has finalized the purchase of a controlling stake in Bloomin’ Brands’ Brazilian operations. Through its fourth private equity fund, Vinci will hold 67% ownership, while the U.S. company will retain a 33% share.
Bloomin’ Brands currently operates nearly 200 restaurants in Brazil under three brands: 174 Outback locations, 17 Abbraccio units, and two Aussie restaurants. The transaction valued Bloomin’ Brands Brazil at R$2.06 billion, including both equity and debt (enterprise value). Bloomin’ retains a put option on the remaining stake for 2028.
The deal was sealed Wednesday night in New York, celebrated with Outback’s iconic frosty beer mugs by Carlos Eduardo Martins, co-head of private equity at Vinci, and Pierre Berenstein, Bloomin’s executive vice president of global customer strategy and former CEO of the Brazilian operation.
“Outback is an iconic brand with a unique value proposition rarely found in other businesses in Brazil,”
Mr. Martins told Pipeline.
Vinci brings a strong track record in the food sector, previously serving as a major investor in Burger King Brazil, where it helped expand the chain from 100 to over 900 locations. Vinci’s strategy with Domino’s was to double digital sales, while for Camarada Camarão, it expanded from a regional presence in Northeast Brazil to a national footprint. “We’ve already shortened the learning curve,” Mr. Martins noted.
The Brazilian operation, launched in the 1990s, is profitable and continues to grow, with 18 new units opening last year. The ownership structure has varied over time, from master franchise agreements to joint ventures and local ownership. The Vinci deal is primarily a secondary transaction, providing funds to Bloomin’ in the U.S. for debt reduction, along with a primary tranche to support expansion in Brazil.
“We are aligned with Vinci on the company’s future and remain committed to the Brazilian operation, which is why we are staying on as shareholders,”
Mr. Berenstein told Pipeline. He pointed out that dining out accounts for nearly 70% of U.S. food spending, compared to only 33% in Brazil—suggesting significant growth potential.
The plan is to double the Outback chain, Bloomin’s flagship brand, while also expanding the other two to establish them further. “Outback is a category leader with high demand, and we’re careful with our expansion, ensuring a reliable supply chain for every item, like our signature onion,” said Mr. Berenstein.
Source: Valor International
