Vinci Partners exited local franchise Domino’s Brazil Pizza to Burger King Brazil in exchange for shares in BK Brazil. The transaction is subject to approval. Vinci acquired Domino’s in 2018.
(Press Release) Vinci Partners Investments Ltd. (NASDAQ: VINP) (“Vinci Partners,” “we,” “us,” or “our”), the controlling company of a leading alternative investment platform in Brazil, announced today that it has agreed to sell Domino’s Brasil (“Domino’s”, the “Company”) to BK Brasil, the master franchise in Brazil for iconic QSR brands such as Burger King and Popeyes, that since 2017 is listed on the Brazilian Stock Exchange (B3).
Domino’s Brasil holds exclusive rights to own, operate and sub-franchise stores under the Domino’s Pizza brand in Brazil. Vinci Capital Partners III (“VCP III”), the third vintage of Vinci Partners’ Private Equity flagship strategy, acquired full ownership of Domino’s in 2018.
Since then, VCP III’s management team has supported the Company’s expansion plans, by opening new company-owned stores and increasing digital sales penetration through strong investments in technology and consumer experience that led digital sales to grow from 12% in 2018 to today’s almost 60% (versus 70% for the brand in its US operations).
Carlos Eduardo Martins, partner and senior member of Vinci Partners’ Private Equity team, and former CEO of Domino’s, said, “We are extremely proud with the story we built alongside the Domino’s team in less than three years. With VCP III’s investment we were able to significantly expand the Company’s brand footprint, growing store count by almost 50%, consolidating its position as the leading company in the pizza foodservice market and home-delivery channel in Brazil. We believe the partnership with BK Brasil will allow the company to continue its growth trajectory, now as part of the leading QSR player in the country. We look forward to partnering with BK Brasil’s management team and board to continue to generate value in our investment.”
Bruno Zaremba, partner and Head of Private Equity and Investor Relations for Vinci Partners, said, “Our investment in Domino’s builds on Vinci Partners’ successful history of supporting companies in driving transformational growth, improving governance practices, and generating value for all stakeholders. This also marks the first capital return step for VCP III, as the fund will now hold a liquid security instead of its privately held position in Domino’s.”
The transaction comprises a share swap whereby VCP III will retain 16.4% of BK Brasil’s outstanding shares and grants VCP III the right to appoint two new board members, including the new Chairman of the company. Consummation of the transaction is subject to shareholder and regulatory approvals, and once approved is expected to close in 2021.
About Vinci Partners Private Equity
Vinci Partners’ Private Equity strategy has a sector-agnostic approach focused on growth equity investments in Brazil. The main strategic focus is value creation by promoting revenue, productivity and profitability growth through significant operating and management changes in portfolio companies. The private equity strategy invests through two sub-strategies: Vinci Capital Partners, which focuses on control and co-control investments, and Vinci Impact and Return, that focuses on minority investments in small-to-medium enterprises with dual mandate of generating ESG impact as well as market returns.
About Vinci Partners
Vinci Partners is a leading alternative investment platform in Brazil, established in 2009. Vinci Partners’ business segments include private equity, public equities, real estate, credit, infrastructure, hedge funds, and investment products and solutions, each managed by dedicated investment teams with an independent investment committee and decision-making process. We also have a financial advisory business, focusing mostly on pre-initial public offering, or pre-IPO, and merger and acquisition, or M&A, advisory services for Brazilian middle-market companies.
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