In a deal valued at approximately $25 million, The ONE Group Hospitality plans to acquire the assets of Kona Grill. The list of assets includes the worldwide rights to the name “Kona Grill” and other intellectual property, such as menu recipes. The acquisition is subject to financing conditions, the approval of the United States Bankruptcy Court for the District of Delaware, and other customary closing conditions.

As part of the deal, The ONE Group Hospitality will purchase the 24 remaining Kona Grill restaurants and assume certain contracts, including two international franchise licenses. In addition, The ONE Group Hospitality will assume debt of approximately $11 million. The ONE Group Hospitality, also parent company to the STK steakhouse chain, anticipates it will take up to 12 months to fully integrate Kona Grill.

“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,” said Emanuel “Manny” Hilario, president and CEO of The ONE Group. “The acquisition of Kona Grill also provides us with a complementary concept to STK, potentially creating another long-term growth vehicle once we fully integrate the restaurants into The ONE Group. The remaining 24 domestic restaurants, down from 40 at year-end 2018, reflect a strong base of high performing restaurants in attractive markets.”