Tao Group, Creator of Nightlife and Dining for Glitterati, Sells to Mohari for $550 Million

Tao Group, a longtime creator of hot global nightlife brands and fine dining, has found harmony with billionaire Mark Scheinberg’s company Mohari. The latter has moved to acquire the hospitality giant in a deal that would value Tao Group at $550 million.

Tao Group has launched clubs, pop-ups and eateries like the eponymous Tao, the Michelin Star-awarded Hakkasan, Omnia, Marquee, Lavo and Beauty & Essex in multiple cities across the U.S. and internationally. The locations have been heavily favored by celebrities, media powerbrokers, sports stars and other gliteratti for over two decades. Tao is run by co-CEO’s Noah Tepperberg and Jason Strauss.

Mohari managing partner and former Four Seasons CEO J. Allen Smith called Tao an “innovator in nightlife to a leader in premium lifestyle and hospitality. Its global footprint of more than 80 branded locations in over 20 markets and best-in-class management infrastructure speaks to the group’s tremendous potential.”

Following an expected close in May, Mohari will take the ownership stake previously held by Madison Square Garden Entertainment Corp. Initial post-merger plans include the incorporation of Tao venues in Mohari’s existing portfolio of luxury destinations, including the Peninsula Papagayo in Costa Rica, anchored by a Four Seasons luxury resort; Centro Canalejas Madrid, featuring the Four Seasons Madrid; and The Ritz-Carlton Yacht Collection.

“Over the last 20 years, we have been laser-focused on building premium guest experiences and a company with a global influence in all areas of hospitality, entertainment and pop culture,” said Tepperberg. “Mohari’s shared vision, coupled with the strength of its portfolio and leadership, make it an ideal partner as we look at the next chapter.”

As a result of the sale, Tao Group will enter into a multi-year agreement with MSG Entertainment for ongoing consulting, marketing and support services at Madison Square Garden and Sphere in Las Vegas.

Moelis & Company, Kirkland & Ellis and Deloitte advised Mohari on the deal. Goldman Sachs and Hughes Hubbard & Reed represented Tao Group.

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