Carlyle backs Brazilian restaurant chain Madero

The Carlyle Group has agreed to acquire a “significant” minority stake in Grupo Madero, a dining and fast-casual restaurant chain in Brazil. No financial terms were disclosed. Santander served as financial adviser to Carlyle on the transaction.


New York, NY and São Paulo, BR – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has agreed to make a significant minority investment in Grupo Madero (“Madero”), the largest casual dining and fast-casual restaurant chain in Brazil. Terms of the transaction were not disclosed.

Founded in 2005, Madero operates 140 restaurants primarily across three restaurant brands: Madero Steakhouse, Madero Container and Jeronimo. Madero Steakhouse is a casual dining concept with table service and an expansive menu headlined by “the best burger in the world,” while Madero Container and Jeronimo are fast-casual concepts with high-quality, hamburger-focused menus. Madero is able to maximize quality, service and efficiency by leveraging its technology-enabled platform and vertically-integrated business model, the foundation of which is its state-of-the-art central kitchen in Ponta Grossa.

“We are thrilled to partner with Carlyle – a firm which combines experience investing in restaurants around the world with a deep understanding of the Brazilian retail market, which will be a valuable resource as we execute on our growth strategy,” said Junior Durski, Madero’s Founder and Chief Executive Officer. “Carlyle understands our vision for Madero and values our unique culture and dedication to our customers, employees, and local communities. We have set ambitious goals, and we are excited that Carlyle will be our partner for the next stage of our journey.”

Jay Sammons, Managing Director and Carlyle’s Global Head of Consumer & Retail, said, “Madero has built a differentiated brand and business model, utilizing consumer-oriented technology and leveraging the company’s best-in-class operations to serve great food to millions of satisfied customers across Brazil. We are excited to apply our significant restaurant and consumer expertise to support Junior and Madero’s leadership team as they execute on the company’s plans for future growth.”

Fernando Borges, Managing Director and Head of Carlyle’s South America Buyout Group, said, “Junior and his team have done an exceptional job building Madero into one of the pre-eminent restaurant brands in Brazil. We are fully aligned on the growth plan that Junior and the management team are pursuing, and we are enthusiastic about the opportunities ahead.”

Equity from this transaction will come from Carlyle Partners VII, an $18.5 billion fund that makes strategic majority and minority investments across five industries. Carlyle has extensive experience investing in the restaurant space and in Brazil, including past investments in Dunkin’ Brands (franchisor of Dunkin’ Donuts and Baskin-Robbins), Chimney (pub-style restaurant chain in Japan), Alamar Foods (franchisee of Wendy’s and Domino’s Pizza restaurants in the Middle East), Gastronomía & Negocios S.A. (largest franchisor of quick service restaurants in Chile), Babela Group (Italian dining restaurant chain in China), CVC Brasil Operadora e Agência de Viagens S.A. (tour operator in Brazil), Tok&Stok (one of the largest design, furniture and decoration retailers in Brazil), Ri Happy (one of the largest specialty retailers of toys in Brazil) and Rede D’Or (largest hospital network in Brazil), among others. Carlyle has invested more than $2.5 billion in Brazilian-based companies over the past 10 years, and the investment in Madero reflects the firm’s long-term commitment to supporting companies in the region.

The transaction remains subject to anti-trust review.
Pinheiro Neto and Debevoise & Plimpton served as counsel to Carlyle, and Santander served as financial advisor to Carlyle. Grupo Madero was advised by Machado Meyer Advogados.

About Grupo Madero
Madero, the leading casual and fast-casual dining restaurant chain in Brazil, was founded in 2005 by Junior Durski, a self-taught chef who opened his first restaurant in 1999. The company operates 140 restaurants under three principal banners: Madero Steakhouse, Madero Container, and Jeronimo. Madero Steakhouse is the company’s original casual dining format developed in 2005 and is one of the largest casual dining banners in Brazil. Madero Container is a fast-casual format developed in 2014, which offers a burger-focused subset of Madero Steakhouse’s menu. Jeronimo is the company’s newest fast-casual concept which was launched in 2017 and offers a high-quality, burger-focused menu. Madero’s vertically-integrated business model, which includes a state-of-the-art central kitchen and full logistics capabilities, including an owned fleet of temperature-controlled trucks, enables the company to focus on providing high-quality food at affordable prices across every major region in Brazil. The company employs approximately 6,000 people across Brazil.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.