Business
RCI Announces Closing on the Acquisition of 11 Adult Clubs in Six States
HOUSTON, Oct. 19, 2021 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced closing yesterday on the acquisition of 11 adult nightclubs in
About this update from Rci Hospitality Holdings, Inc.
[{"type":"text","content":"HOUSTON, Oct. 19, 2021 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced closing yesterday on the acquisition of 11 adult nightclubs in six states, the clubs' intellectual property, and six related real estate properties. The company previously announced definitive agreements for the acquisition on July 26. Financial terms remained the same.\n\n \n \n \n \n \n \n\n \nEric Langan, President and CEO of RCI Hospitality Holdings, Inc., said, \"We're excited about this acquisition and the new team members who are joining us. The new clubs increase our current unit count by 23%, to 58 locations. They expand our footprint with five in Denver, CO; two near St. Louis, MO; and one each in Indianapolis, IN, Louisville, KY, Raleigh, NC, and Portland, ME. They generated approximately $40 million in revenue and $14 million in adjusted EBITDA in the year ended December 31, 2019. We expect them to be accretive to earnings and cash flow in year one and hope to improve upon their run rate.\"\nApproximately $3 million in maintenance capital expenditures is expected to be spent on the newly acquired locations in the current fiscal 2022 to significantly revitalize the clubs and improve the customer experience. Company-wide, RCI FY22 maintenance capex is expected to total about $7 million.\nClubs Acquired\nClub Name \nLocation\nURL\nMile High Men's Club\nDenver, CO*\nhttps://milehighmensclub.com/\nPT's Showclub Centerfold\nDenver, CO*\nhttps://ptscenterfold.com/\nThe Diamond Cabaret Denver\nDenver, CO\nhttps://thediamondcabaret.com/\nPT's Showclub Denver\nDenver, CO*\nhttps://ptsshowclubdenver.com/\nLa Boheme Gentlemen's Cabaret\nDenver, CO\nhttps://labohemegc.com/\nPT's Showclub Indianapolis\nIndianapolis, IN*\nhttps://ptsshowclubindy.com/\nPT's Showclub Louisville \nLouisville, KY*\nhttps://ptsshowclublouisville.com/\nPT's Showclub Portland \nPortland, ME*\nhttps://ptsshowclubportland.com/\nThe Men's Club of Raleigh\nRaleigh, NC\nhttps://mensclubraleigh.com/\nThe Diamond Cabaret St Louis\nSauget, IL\nhttps://diamondcabaretstlouis.com/\nCountry Rock Cabaret\nSauget, IL\nhttps://countryrockcabaret.com/\n* Real estate being acquired.\nAbout RCI Hospitality Holdings, Inc. (Nasdaq: RICK)\nWith more than 50 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and spor...