The One Group Hospitality has agreed to acquire Safflower Holdings, the owner of the Benihana and RA Sushi restaurant brands, in a $365m deal.
The deal is to be financed through a combination of $160m in preferred equity and a portion of a $390m term loan and credit facility.
The transaction will be completed by the end of the second quarter of 2024.
ONE Group's portfolio will then include 168 venues worldwide, encompassing full-service entertainment and grill restaurants across four distinct and complementary brands.
Benihana currently operates 88 company-owned restaurants, with a further 17 venues franchised or licensed in the Americas.
The acquisition will add $575m in annualised system-wide revenue and $70m in annual run-rate EBITDA [earnings before interest, taxation, depreciation and amortisation] before synergies.
The anticipated synergies, estimated at $20m annually, will be fully realised 24 months post-closure.
The One Group Hospitality president and CEO Emanuel Hilario said: “We are delighted to welcome Benihana, an American cultural icon with timeless appeal that transcends generations and offers unparalleled guest experiences, to the ONE Group family.
“The strategic acquisition of a one-of-a-kind restaurant platform with a compelling financial profile supports our broader strategy to fortify and diversify our leading portfolio of best-in-class experiential VIBE restaurant concepts.
“With Benihana joining the ONE Group’s platform, our combined annualised EBITDA enhances our ability to continue to fully fund our expansion while delivering meaningful free cash flow enabling debt reduction and shareholder-friendly capital allocation to drive long-term value for shareholders.”
