The One Group acquires 12 restaurants
Restaurant firm the One Group, run by British-born founder Jonathan Segal (pictured), has acquired 12 more restaurants after a $75m (£49m) deal with a US-based hotel firm.
The One Group Hospitality confirmed that it has entered an agreement with SBEEG Holdings, the holding company of hotel firm SLS, to purchase the nine-strong Katsuya and three-strong Cleo restaurant brands.
The agreement heralds the start of a strategic relationship that will see the One Group open Katsuya, Cleo and the One Group restaurants at new SLS, Redbury and Hyde hotels.
The acquisition includes four Katsuya sites in Los Angeles that are company-owned and operated, with the One Group receiving licence fees from a further two in SLS hotels in Las Vegas and Miami, and from two additional managed locations, one expected to open in the SLS Lux at Baha Mar in the Bahamas, and another expected to open in the SLS Lux Brickell in Miami.
There is also a licensing agreement with a Middle East-based firm called Alshaya for three Katsuya restaurants in the Middle East, with a commitment from Alshaya to open an additional 14 locations over the next five years.
The One Group will also receive licence fees from three managed Cleo locations in Los Angeles (Redbury hote), Las Vegas (SLS hotel) and Miami (Redbury hotel), with one more managed location to open in the Bahamas at SLS Lux at Baha Mar.
There is also an agreement providing the opportunity to open additional One Group restaurants at new SLS, Redbury and Hyde hotels, under which SBE is expected to provide the opportunity for at least 10 additional restaurants in its hotels over the next five years.
"We believe the proposed acquisition will be transformative for our company. Pending the completion of the transaction, our pro forma 2014 adjusted EBITDA would have been approximately $14.9m (£9.7m), up from $7.8m (£5.1m) as originally reported by us, by combining the Katsuya and Cleo brands with our restaurant and hospitality businesses, while leveraging our global infrastructure," said Jonathan Segal, CEO of the One Group."
In addition to its operations in the US, the One Group runs a number of UK restaurants, including STK London and Cucina Asellina, both in the ME London hotel, and the Heliot Steak House at the Hippodrome Casino in London.
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