Machado Associados has helped US fast-food chain restaurant Subway sell the exclusive right to operate all of its restaurants in Brazil to private equity group SouthRock.
Pinheiro Neto Advogados advised the buyer in the deal, which closed on 5 May. The value is confidential.
The agreement puts SouthRock in charge of the management and development of Subway’s restaurants in Brazil. That includes supporting the marketing, development and operations of the franchise.
Subway is planning to significantly increase its restaurant count in Latin America and the Caribbean over the next few years. The partnership is expected to propel Subway’s current presence in the market, which already counts more than 1,600 locations, as well as allowing the business to modernise itself.
Founded in 1965, Subway is known around the world for its signature submarine sandwiches, as well as for selling other products like wraps, salads and beverages. The Latin American and Caribbean division of the sandwich giant is the fastest-growing region, with locations across 34 jurisdictions, including Brazil, Mexico and Puerto Rico.
São Paulo-headquartered SouthRock invests in companies operating in the restaurant, travel and leisure sector. In 2018, the group reached an agreement with Starbucks, obtaining the right to develop and operate its branches in Brazil.
Counsel to Subway
In-house counsel – Karen Luna
Partners Caio Fink Fernandes, Mirella da Costa Andreola and Stephanie Makin, and associates Jéssica Costa and Julia Abdalla
Counsel to SouthRock
Pinheiro Neto Advogados
Partners Tiago Themudo Lessa, Thiago José da Silva and Jorge Lopes, and associates Tatiana Dratovsky Sister, Matheus de Abreu Peres and Victor Gregolin