HOUSTON, March 16,
2023 /PRNewswire/ -- RCI Hospitality Holdings, Inc.
(Nasdaq: RICK) announced closing on the acquisition of two Baby
Dolls and three Chicas Locas adult nightclubs and their associated
real estate in the Dallas-Fort
Worth and Houston
markets.
The company previously announced signing definitive agreements
in December for the $66.5 million
acquisition, RCI's second largest since its founding and one of the
largest in the history of the adult nightclub industry.
Payment consisted of $25.0 million
in cash of which $10.0 million is
being financed through an unsecured bank line of credit; 10-year,
7% seller financing notes totaling $25.5
million; and 200,000 restricted shares of common stock of
RCI valued at $16.0 million, subject
to a lock-up, leak out agreement.
Eric Langan, President and CEO of
RCI Hospitality Holdings, Inc., said, "We're excited about this
acquisition. The clubs are expected to contribute approximately
$11 million in adjusted EBITDA in
year one. When we complete our expansion/renovation plans, we
anticipate they will generate $14-16
million in annual adjusted EBITDA."
Ed Anakar, President of RCI
Management Services, Inc., said, "We are also excited about the new
team members who are joining the RCI family. They are some of the
best in the industry and important to our plans for growth."
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (Twitter:
@RCIHHinc)
With more than 60 locations, RCI Hospitality Holdings, Inc.,
through its subsidiaries, is the country's leading company in adult
nightclubs and sports bars/restaurants. See all our brands at
www.rcihospitality.com.
Forward-Looking Statements
This press release may contain forward-looking statements that
involve a number of risks and uncertainties that could cause the
company's actual results to differ materially from those indicated,
including, but not limited to, the risks and uncertainties
associated with (i) operating and managing an adult entertainment
or restaurant business, (ii) the business climates in cities where
it operates, (iii) the success or lack thereof in launching and
building the company's businesses, (iv) cyber security, (v)
conditions relevant to real estate transactions, (vi) the impact of
the COVID-19 pandemic, and (vii) numerous other factors such as
laws governing the operation of adult entertainment or restaurant
businesses, competition and dependence on key personnel. For more
detailed discussion of such factors and certain risks and
uncertainties, see RCI's annual report on Form 10-K for the year
ended September 30, 2022, as well as
its other filings with the U.S. Securities and Exchange Commission.
The company has no obligation to update or revise the
forward-looking statements to reflect the occurrence of future
events or circumstances.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.