STK Owner Mixing Surf and Turf in ‘Transformative’ Deal

The ONE Group’s (STKS) agreement to acquire the Katsuya and Cleo restaurant brands is more than a simple merger of surf and turf. It’s a transformative deal, said Jonathan Segal, CEO of the high-end steakhouse operator. 'Katsuya and Cleo are a very similar style of operations,' said Segal. 'In fact, we say Katsuya is to sushi was STK is to steak and Cleo is to Mediterranean. The type of market that they cater to is exactly the same as the STK market.' The ONE Group Hospitality announced earlier this month that it was purchasing the Katsuya and Cleo restaurant brands from SBEEG Holdings for $75 million in cash and 200,000 warrants at an exercise price of $5 per share. Segal anticipates that there will be up to 12 owned and managed/licensed Katsuya and Cleo locations globally by the end of 2015. There are currently 9 Katsuya restaurants operating in Los Angeles (4), Middle East (3), South Beach (1) and Las Vegas (1) and one additional location is expected to open at the Baha Mar in the Bahamas. There are currently three Cleo locations in Los Angeles, Las Vegas and Miami, and one additional location is expected to open at the Baha Mar in the Bahamas. 'It increases our portfolio of restaurant brands which we can then use in our hotel portfolio program where we go into hotels and we take over their entire food and beverage program,' said Segal.