01:21 PM EDT, 03/27/2024 (MT Newswires) -- (Updates with stock movement in the headline and first paragraph)

ONE Group Hospitality ( STKS ) shares surged more than 23% in recent Wednesday trading, extending their rally after the company said it will acquire Safflower Holdings in a deal valued at $365 million.

The company said late Tuesday it will finance the acquisition with $160 million in preferred equity and a portion of a new $390 million term loan and credit facility. Safflower owns Benihana, which operates Japanese teppanyaki and sushi restaurants.

It expects to close the transaction by the end of Q2, after which it will have a global footprint of 168 venues.

The company expects the acquisition to add roughly $575 million in annualized system-wide revenue. It expects the deal to be immediately accretive to earnings per diluted share.

Price: 4.96, Change: +0.95, Percent Change: +23.69