Decision to sell the Brazilian chain is due to financial difficulties of owner Bloomin’ Brands.
Private equity funds Vinci and Advent and Abu Dhabi sovereign fund Mubadala are in the running to purchase Outback’s operations in Brazil, Valor found. The decision to sell the Brazilian asset is due to the financial difficulties of its current owner, Bloomin’ Brands.
Outback steakhouses are very popular in Brazil. According to The Washington Post, Brazil accounted for 83% of Outback's international revenue in 2023.
The sale mandate is in the hands of Bank of America, which has been reaching out to potential interested buyers. According to sources, the conclusion of the deal will take a few more months.
The three funds have expertise in the sector. Mubadala has been focused on building a food franchise conglomerate in Brazil under the umbrella of Zamp, which owns Burger King and Popeyes in the country. It is also in talks to acquire Subway in Brazil following the downfall of the SouthRock fund.
Vinci, on the other hand, has the Domino’s pizza chain in its portfolio, and Burger King was previously one of its investments. Advent has previously invested in IMC, Frango Assado, and KFC.
Pierre Berenstein, executive vice president of global customer strategy and Brazil at Bloomin’ Brands, told Valor in a recent interview that the sale of Outback in Brazil is one of the “alternatives under consideration” and that if they do not find a buyer under “suitable” conditions, the company will keep the operation.
According to the company, the proceeds from the sale could be used to reduce debts of the controlling group, to repurchase shares on the U.S. stock markets, or for reinvestments in the United States.
Outback stated that it announced in May that it is “evaluating strategic alternatives for our operations in Brazil.”
“We are excited about the interest shown in our business and will provide updates as there are developments. We reaffirm that Outback Steakhouse is a company with significant long-term value and will continue operating in Brazil,”
it emphasized in a statement to Valor.
The possible sale of Outback is one step in the ongoing consolidation of the fast food restaurant market in Brazil.
Source: Valor International
