US-based restaurant operator Yoshiharu Global has agreed to acquire three restaurants in Las Vegas, Nevada, for $3.6m.
Yoshiharu will acquire the Jjanga, HJH and Ramen Aku restaurants from an undisclosed restaurant operator.
The deal follows the signing of memoranda of understanding between the parties in September 2023.
In 2023, the three restaurants are expected to have annual revenues of more than $6m.
The transaction is expected to close by the end of the same year.
In a press statement, Yoshiharu said: “The asset purchase agreement is being financed through a combination of cash, a promissory note and a convertible note, which provides the seller with the option to convert the debt into Class A YOSH common shares.”
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The seller will also hold the position of managing director at each restaurant in accordance with an employment agreement.
The acquisition forms part of Yoshiharu’s plan to operate 13 restaurants by the end of 2023.
Yoshiharu then plans to open four new restaurants by the first quarter of 2024 and expects growth of more than 80% in annual revenues from the newly opened establishments and acquisitions.
Yoshiharu president, CEO and board chairman James Chae stated: “We anticipate our authentic Japanese culinary dishes to blend seamlessly with the diverse offerings of each acquired location, propelling the Yoshiharu brand beyond the borders of California.
“We aim to strategically leverage the existing residential customer base in the Las Vegas area and tap into the opportunities presented by tourist attractions to establish a formidable presence in this vibrant city.
“As we look ahead to the rest of the year, these new additions to our portfolio are anticipated to serve as catalysts in propelling our financial growth into new heights as we head into the seasonal and holiday momentum.”