KGA to acquire Kona Grill restaurants for $25M
The ONE Group Hospitality and Kona Grill Acquisition, its wholly owned subsidiary, announced KGA has entered into an Asset Purchase Agreement with Kona Grill, and affiliated entities to purchase substantially all of Kona's restaurants for approximately $25M. 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 expects to finance the acquisition with a new financing facility and cash on hand. Under the terms of the APA, subject to certain conditions, the Company has agreed to purchase the remaining 24 of Kona's domestic restaurants and assume certain contracts, including two international franchise licenses, for approximately $25M in cash plus the assumption of working capital liabilities of approximately $11M. If completed, the Company expects the integration to take approximately 12 months. Once fully integrated, the acquisition is expected to add approximately $100M in annualized revenue and to be accretive to earnings per diluted share and Adjusted EBITDA.