NEW YORK (CelebrityAccess) — The Madison Square Garden Company announced on Wednesday that they have taken a controlling interest in restaurant and nightclub operator TAO Group.
According to MSG, they acquired a 62.5 percent common equity interest in a newly formed TAO Group for $181 million, plus a potential performance earn-out of up to $25.5 million.
Founders Marc Packer, Rich Wolf, Noah Tepperberg and Jason Strauss, the TAO Group operates 19 entertainment dining and nightlife venues in New York City, Las Vegas, and Sydney, Australia under several different brands – Tao, Marquee, Lavo, Avenue, The Stanton Social, Beauty & Essex and Vandal. The company is currently on track to open five new venues in New York City and eight additional venues in new markets, including Los Angeles, Chicago and Singapore.
As a part of the deal, MSG will seek to integrate TAO brands into MSG's existing properties, as well as new properties such as the recently announced venue in Las Vegas as MSG pursues its expansion strategy.
As a part of the agreement, TAO has concentatrated their businesses and assets under the banner of the newly-formed TAO Group. In 2016, TAO's portfolio enerated revenue and adjusted operating income of approximately $235 million and $43 million, respectively.
TAO's New York portfolio includes: Avenue, Beauty & Essex, Lavo Italian Restaurant and Nightclub, Marquee Nightclub, The Stanton Social, Tao Asian Bistro Uptown, Tao Asian Bistro Downtown and Vandal. Additionally, TAO Group operates all of the food and beverage outlets of the Dream Downtown hotel, including room service, PHD Rooftop, Electric Room Lounge and Bodega Negra, as well as lounge spaces at the Dream Midtown hotel including PHD Rooftop, The Fishbowl and The Rickey in New York.
Las Vegas operations include: Beauty & Essex, Tao Asian Bistro, Nightclub & Beach at The Venetian; Lavo Italian Restaurant & Lounge at The Palazzo and Marquee Nightclub & Dayclub at The Cosmopolitan. Marquee Nightclub at The Star – Sydney represents the company’s first international offering. – Staff Writers