Foley Hoag Advises The ONE Group in Acquisition of Kona Grill

Deal results in expected $100 million in annual revenue for The ONE Group

October 14, 2019

Foley Hoag LLP has announced that its client The ONE Group Hospitality, Inc., owners and licensors of the STK branded restaurants, completed the acquisition of the assets of Kona Grill, Inc. and its affiliates out of bankruptcy. Led by partner Alison Bauer, a team of attorneys from Foley Hoag spanning bankruptcy, corporate, tax, real estate and intellectual property practices managed The ONE Group’s acquisition of 24 Kona Grill domestic restaurants and franchise rights for one international location for $25 million in cash and the assumption of working capital liabilities of approximately $11 million. 

“This distressed M&A deal highlights the expert coordination between the bankruptcy and corporate practices at Foley Hoag,” said Bauer, a member of the firm’s Bankruptcy & Creditors’ Rights practice. “We are pleased to have received court approval for this transaction on behalf of The ONE Group, and look forward to seeing its continued success in the upscale and casual restaurant industry.”

The ONE Group Hospitality, Inc. (NASDAQ: STKS) is a global hospitality company that develops and operates upscale and polished casual, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both nationally and internationally.

Kona Grill is expected to add $100 million in annual revenue to The ONE Group, and to be immediately accretive to Consolidated Adjusted EBITDA. The ONE Group expects the integration of Kona Grill to be completed within approximately 12 months. The transaction was funded with cash on hand and the proceeds from a new senior secured credit facility, which consists of a $48 million senior secured term loan and a $12 million revolver from Goldman Sachs Specialty Lending Group, L.P.  

Foley Hoag attorneys who worked on the deal include Alison Bauer, Jennifer Audeh, William Gray, Michael Steinke and Onyebuchi Udozorh, with assistance from Jonathan Book, Nicole Kinsley,  and Jiun-Wen Bob Teoh

About Foley Hoag LLP

Foley Hoag provides innovative, strategic legal services to public, private and government clients across the globe. We have premier capabilities in the life sciences, healthcare, technology, energy, professional services and private funds fields, and in cross-border disputes. The diverse backgrounds, perspectives and experiences of our lawyers and staff contribute to the exceptional senior level service we deliver to clients ranging from startups to multinational companies to sovereign states. For more information, visit www.foleyhoag.com or follow @FoleyHoag on Twitter.