The ONE Group Hospitality has announced that it has entered into an Asset Purchase Agreement to buy Kona Grill for approximately $25 million.
The final purchase price will be determined at the closing of the transaction based on the completion of due diligence, subject to certain agreed upon adjustments.
The company has agreed to purchase the remaining 24 of Kona’s domestic restaurants and assume certain contracts, including two international franchise licenses.
If completed, the integration is expected to take approximately 12 months.
Emanuel “Manny” Hilario, President and CEO of The ONE Group, said: “Kona Grill is an excellent brand that has maintained a strong position in the remaining 24 restaurants where it operates due to its elevated dining experience, contemporary, freshly prepared food, award-wining sushi, and specialty cocktails.
“Through this transaction, we believe we can leverage our corporate infrastructure and operating expertise, particularly our bar-business know-how and VIBE dining, to drive improved performance in many of the same ways we have substantially improved comparable store sales and overall profitability at STK”.
He continued: “The remaining 24 domestic restaurants, down from 40 at year-end 2018, reflect a strong base of high performing restaurants in attractive markets. We look forward to maximizing the multiple opportunities that this acquisition will provide to create long-term shareholder value.”
The Kona assets include the worldwide rights to the name “Kona Grill” and other intellectual property, including trademarks, domain names, menu recipes, and customer databases.