Dining and nightlife brand Tao Group Hospitality has acquired Hakkasan Group, the entertainment chains announced Wednesday.
The newly formed hospitality group operates 61 dining and nightlife venues in 22 markets across five continents, with brands including Tao, Beauty & Essex, Hakkasan, Yauatcha and more.
Financial details of the transaction were not disclosed.
Pre-pandemic, Tao Group’s Beauty & Essex frequently made Restaurant Business’ list of the top-grossing independent restaurants. The lavish restaurant’s New York location made nearly $16.4 million in annual sales in 2019, according to an estimate from RB sister company Technomic.
Hakkasan Group’s executive team will continue to run day-to-day operations for its properties under the direction of Tao Group co-CEOs Noah Tepperberg and Jason Strauss.
“Despite the challenges caused by the pandemic, we know there’s a real desire by people around the world to gather once again,” Strauss said in a statement. “As indoor dining and other hospitality experiences start to return to regular operations, we believe our newly combined company will be well-positioned to take advantage of this pent-up demand, setting the stage for long-term growth.”
The deal will further the global growth of both brands. The acquisition of Hakkasan expands Tao’s reach into Las Vegas, Southern California and Miami. It will also provide benefits to areas such as marketing, cross-promotion, procurement, purchasing and sponsorships, the companies said.
Tao Group is part of Madison Square Garden Entertainment Corp., and the newly formed company will continue to work with MSG Entertainment to have a “significant presence” at MSG venues such as Madison Square Garden in New York and new venues to be built in Las Vegas and London, called MSG Sphere. The Las Vegas venue is expected to be completed in 2023.
Tao Group completed the deal by issuing equity from one of its subsidiaries to acquire Hakkasan, giving Tao majority control of the combined company. MSG Entertainment owns a controlling interest in Tao Group and now owns controlling, indirect interest in the combined company.