Business
The ONE Group Hospitality Completes Acquisition of Kona Grill
Expected to add approximately $100 million in annual revenue and to be immediately accretive to Consolidated Adjusted EBITDA Increases 2019 financial targets
About this update from The One Group Hospitality, Inc.
[{"type":"text","content":"\nExpected to add approximately $100 million in annual revenue and to be immediately accretive to Consolidated Adjusted EBITDA\n\n\nIncreases 2019 financial targets to reflect acquisition\n\n\nPreliminary 2020 Expectation of $23 million to $25 million in Consolidated Adjusted EBITDA\n\n\nSchedules conference call and webcast for Third Quarter 2019 results on November 7, 2019\n\n DENVER--(BUSINESS WIRE)--\nThe ONE Group Hospitality, Inc. (Nasdaq: STKS) and Kona Grill Acquisition, LLC (“KGA”), its wholly owned subsidiary (collectively, “The ONE Group”), today announced KGA has completed the purchase of substantially all the assets of Kona Grill, Inc. and its affiliated entities (collectively, “Kona Grill”). Kona Grill is expected to add $100 million in annual revenue, and to be immediately accretive to Consolidated Adjusted EBITDA. The ONE Group also increased its 2019 financial targets to account for the acquisition.\n\n\n“We are pleased to complete the acquisition of Kona Grill and welcome 2,000 new team members and associates to The ONE Group family. We have added an excellent brand to our restaurant portfolio, with 24 high performing domestic restaurants and one international franchised restaurant located in attractive markets. Over the next twelve months, we intend to integrate Kona Grill by leveraging our corporate infrastructure, our bar-business knowledge and unique VIBE dining program, to elevate the brand experience and drive improved top line performance to create long-term shareholder value,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.\n\n\n“We currently anticipate Kona Grill contributing approximately $23 to $24 million in revenue and over $1 million in Adjusted EBITDA to our consolidated results in the fourth quarter of 2019. We expect Kona Grill to be immediately accretive to Consolidated Adjusted EBITDA, to add approximately $100 million in annualized food and beverage sales and to be accretive to earnings per diluted share once fully integrated. Most importantly, our preliminary 2020 expectation is to deliver significant growth by generating between $23 and $25 million in Consolidated Adjusted EBITDA,” concluded Mr. Hilario.\n\n\nUpdated 2019 Targets\n\n\nWe are updating the following targets for 2019 to account for the contribution from Kona Grill’s domestic restaurants and one international...