Carlyle-Backed Madero Aiming For $1.3bn In An IPO

Aug 14, 2021 | News

Madero Industria, a Brazilian restaurant chain backed by private equity firm Carlyle Group, is targeting about $1.3bn in its initial public offering.

The Ponta Grossa, Parana-based company plans to raise about $230m from the share sale, said the people, who asked not to be named because the discussions are private. Some of the existing investors would also sell some of their stake. Madero declined to comment, citing a quiet period.

The restaurant chain was hit hard by Covid-19 lockdowns in Brazil, a global hot spot for the disease. With 238 stores in the country, Madero saw its net debt rise by 258% between December 2019 and June last year, according to the IPO prospectus. The plan is to use about half of the proceeds from the stock sale to pay off some of its financial contracts, with the rest being used to expand restaurants and potential acquisitions.

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Madero was founded by Luiz Renato Durski Jr., a businessman who took to social media last year to criticize the lockdowns. Junior Durski, as he is known, currently owns 65% of the company. Carlyle agreed to buy a minority stake in Madero in 2019 and owns approximately 28% of the company, according to the prospectus.

The restaurant chain hopes to bounce back as Brazil progresses through vaccinations and lifts Covid-19 restrictions. Sao Paulo, the wealthiest state in the country, has already eased most curbs and allowed restaurants with capacities up to 80%. Brazil has the second highest virus death rate in the world, but daily infections have gradually fallen to between 30,000 and 40,000 a day.

Madero, which also operates restaurants under the Jeronimo brand, filed for an IPO earlier this month without disclosing details about the offering. Banks running the deal include BTG Pactual, Bank of America, Bradesco BBI, Itau BBA, UBS-BB and JPMorgan.

Source: Whats new 2 day

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