Morgans sells The Light Group to Hakkasan

George Sell George Sell Uploaded 17 December 2014

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US: Morgans Hotel Group has agreed to sell its 90 per cent controlling interest in The Light Group to Hakkasan Group.

US: Morgans Hotel Group has agreed to sell its 90 per cent controlling interest in The Light Group to Hakkasan Group.

The Light Group (TLG), described as "a leading lifestyle food & beverage company", was sold for $36 million. The purchase price includes the remaining 10 per cent equity interest in TLG held by Andrew Sasson, TLG's founder, and Andy Masi, TLG's CEO.

As part of the transaction, Morgans Hotel Group will assume control of the food and beverage offerings from TLG at its Delano South Beach hotel. The company will also retain its leasehold interests in the three Mandalay Bay restaurants that will continue to be managed by TLG, as well as an option to buy a minority interest in TLG for a period of up to 18 months post-closing.

Jason Kalisman, chairman of the board and interim CEO of Morgans Hotel Group, said: "The sale of The Light Group allows us to deliver significant value to stockholders and demonstrates the success of the Special Transaction Committee's ongoing strategic review process.  Not only does the transaction strengthen Morgans Hotel Group's financial position, but we will also have an enhanced focus on our core assets.  Under Andy Masi's direction, The Light Group has established itself as a strong brand, and we expect the business will thrive as part of Hakkasan Group."

"We are thrilled to be bringing The Light Group and its unrivaled nightlife, daylife and restaurant offerings under Hakkasan Group's umbrella," said Neil Moffitt, CEO of Hakkasan Group. "The acquisition of a majority stake in The Light Group is another step forward in our ambitious investment strategy to deliver exceptional guest experiences.  The agreement increases our dining and entertainment portfolio with an additional 22 nightlife, daylife and restaurant properties, making Hakkasan Group Las Vegas' largest non-gaming dining, entertainment and hospitality company.  Hakkasan Group and The Light Group are highly complementary businesses and we intend to assume and maintain the vast majority of The Light Group's contracts, licenses and events."

www.morganshotelgroup.com
www.hakkasangroup.com

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