NEW YORK, Oct. 17, 2013 /PRNewswire/ -- The ONE Group, LLC ("The ONE Group") announced today that it is becoming a publicly traded company through a business combination with Committed Capital Acquisition Corporation ("Committed Capital") (OTCBB: CCAC). The ONE Group develops and operates upscale, high-energy restaurants, including its primary restaurant brand STK®, a unique steakhouse concept with locations in major metropolitan cities throughout the United States, as well as in London.  The ONE Group also offers a turn-key food & beverage service for hospitality venues including boutique hotels, casinos and other high-end locations, under the name "ONExperience".

The ONE Group Highlights

  • STK brand drives compelling unit economics – 50%-plus cash-on-cash returns
  • Hospitality Food & Beverage Services Business generates incremental high margin management and incentive fee income  
  • 25% annual new unit growth anticipated over the next three years
  • Targeted long-term annual EPS growth of 25% - 30%

The ONE Group's management team, led by founder and CEO Jonathan Segal, will lead the company.  Following the completion of the Business Combination, the company will change its name to The ONE Group, Inc.  Mr. Segal was recently named an Ernst & Young Entrepreneur Of The Year® 2013 Award winner.

"We have grown The ONE Group by creating a high-energy dining experience through a blend of the modern steakhouse and chic lounge concepts that attracts a broad demographic and encourages social interaction," said Jonathan Segal, CEO of The ONE Group. "This business combination will allow The ONE Group to further expand our highly sought after STK brand in large metropolitan cities and leverage our "ONExperience" to drive attractive fee-based, capital efficient hospitality services opportunities. We look forward to completing the Business Combination, allowing for continued growth of The ONE Group and delivering value to shareholders."

Michael Rapp, Chairman and President of Committed Capital added, "Jonathan and his talented team have built a truly exceptional, category leading hospitality brand from one restaurant in 2006 to a global company that will generate an estimated $125 million in system-wide revenue this year. We believe The ONE Group's strong unit economics, high-growth prospects and capital-light model will uniquely position the company in the capital markets and provide our investors with attractive long-term returns."

Concurrent with the closing of the Business Combination, Committed Capital completed a private placement of 3,110,075 shares of common stock led by institutional investors including clients of the investment advisory subsidiaries of Federated Investors, Inc. at a purchase price of $5.00 per share, realizing gross proceeds of $15,550,375. The proceeds of the private placement, combined with $28,750,000 in cash and cash equivalents currently held in the trust account of Committed Capital, will be used to make closing payments and commitments and fund new STK restaurants and "ONExperience" hospitality opportunities. 

Details regarding these and other terms of the transaction will be set out in the Current Report on Form 8-K to be filed by Committed Capital, which will be available on the SEC website at www.sec.gov.

Jefferies LLC served as exclusive financial advisor to The ONE Group and exclusive placement agent in conjunction with the Private Placement. Stifel, Nicolaus & Company, Incorporated served as exclusive financial advisor to Committed Capital on the acquisition of The ONE Group. Delavaco Group also served as financial advisor to Committed Capital along with participation in the transaction.  The ONE Group's legal counsels were Littman Krooks LLP and The Giannuzzi Group, LLP and Committed Capital's legal counsel was Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C.

Overview of The ONE Group

The ONE Group develops and operates upscale, high-energy restaurants and lounges and provides "ONExperience", a turn-key food and beverage service for hospitality venues including boutique hotels, casinos and other high-end locations in the United States and United Kingdom. The company was established with the vision of becoming a global market leader in the hospitality industry by melding high-quality service, ambiance and cuisine into one great experience.

The ONE Group's primary restaurant brand is STK®, which is a unique steakhouse concept with locations in major metropolitan cities throughout the U.S. and in London. STK artfully blends two concepts, the modern steakhouse and a chic lounge, into one offering a high-energy, fine dining experience with the superior quality of a traditional steakhouse.  Each STK location features an open aired, vibe-driven restaurant and bar area with a DJ or DJ mix playing music throughout the restaurant so guests can enjoy a fun "destination" environment that encourages social interaction. The STK menu provides a variety of portion sizes and signature options to appeal to a broad customer demographic. There are currently seven STK restaurants in major metropolitan cities, including Atlanta, Las Vegas, Los Angeles, New York (2), London, and Miami, which is in the process of being re-located in South Beach. An additional STK is under development in Washington, D.C.

The ONE Group's food and beverage hospitality services business provides the development, management and operations for premier restaurants and turn-key food and beverage services at high-end boutique hotels and casinos. Through developmental and operational expertise, The ONE Group is able to provide comprehensive tailored food and beverage solutions to its hospitality clients. Fee-based solutions include developing, managing and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service and mini bars on a contract basis.

The ONE Group's food and beverage hospitality contracts generate revenue for The ONE Group through base management fees, calculated as a percentage of the operation's revenues, and additional incentive fees based on the operation's profitability. The ONE Group currently has four food & beverage hospitality contracts with hotels and casinos throughout the United States and in London, including leading global hospitality companies such as Gansevoort Hotel Group, Hippodrome Casino, ME Hotels, and Starwood Capital's Perry Hotel.

Additional information about The ONE Group can be found at www.togrp.com.

About Committed Capital Acquisition Corporation

Committed Capital was formed for the purpose of acquiring or merging with an operating business. The board of directors had the sole discretion and authority to approve and consummate the Business Combination.

Cautionary Statement on Forward-Looking Statements

This press release includes "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward looking statements, including but not limited to, (1) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain its key employees; (2) changes in applicable laws or regulations; (3) the possibility that the ONE Group may be adversely affected by other economic, business, and/or competitive factors; and (4) other risks and uncertainties indicated from time to time in filings with the SEC by Committed Capital (to be renamed The ONE Group).

Investors are referred to the most recent reports filed with the SEC by Committed Capital. Investors are cautioned not to place undue reliance upon any forward looking statements, which speak only as of the date made, and The ONE Group and Committed Capital undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE Committed Capital Acquisition Corporation

Copyright 2013 PR Newswire

ONE Group Hospitality (NASDAQ:STKS)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more ONE Group Hospitality Charts.
ONE Group Hospitality (NASDAQ:STKS)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more ONE Group Hospitality Charts.