HOUSTON, Aug. 20, 2018 /PRNewswire/ -- RCI
Hospitality Holdings, Inc. (NASDAQ: RICK) today announced a
subsidiary has signed a definitive agreement to acquire the assets
of Blush Gentlemen's Club & Sports Bar, a top club located in
Pittsburgh, and related real
estate for total consideration of $15.0
million.
Blush is the only gentlemen's club in downtown Pittsburgh. It has been in business close to
50 years with grandfathered use dating back to the 1930s. The
16,000 square foot club has a full liquor license, serves food, and
is open to 2 AM Sunday through Thursday nights and 3 AM on Friday
and Saturday nights. Located in downtown Pittsburgh's Cultural District, Blush is an easy
walk from the convention center, stadiums, hotels, and
restaurants.
"Blush fits perfectly in line with our goal of acquiring
profitable number one locations with a long history of cash flow,"
said Eric Langan, President &
CEO, of RCI. "As a $3 million plus in
EBITDA club, the acquisition fits our capital allocation strategy
in terms of valuation and cash on cash return. Pittsburgh is a new top 20 metropolitan market for
us. It is a major business and financial center, and convention
city. With the Pittsburgh Steelers, Pirates and Penguins, it is
also one of the greatest sports markets in the country. We look
forward to Blush's long-running management team joining our
organization."
Under terms of the agreement, the RCI subsidiary will pay
$10.0 million for the club,
consisting of a $2.5 million cash
payment and $7.5 million in
seller-financing, and $5.0 million in
cash for the real estate. The real estate consists of two connected
buildings – a five-story building at 135 9th Street and
a two-story building at 901-903 Penn Avenue. Blush occupies three
floors primarily in 135 9th Street. Assuming transfer of
all necessary permits, licenses and other authorizations, and
subject to usual closing conditions for transactions of this kind,
including due diligence, closing is expected on or before
October 31, 2018.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through
its subsidiaries, is the country's leading company in gentlemen's
clubs and sports bars/restaurants. Clubs in New York City, Miami, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, St. Louis and other markets
operate under brand names, such as Rick's Cabaret, XTC, Club Onyx,
Vivid Cabaret, Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret.
Sports bars/restaurants operate under the brand name Bombshells
Restaurant & Bar. Please visit
http://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
in this press release, including the risks and uncertainties
associated with operating and managing an adult business, the
business climates in cities where it operates, the success or lack
thereof in launching and building the company's businesses, risks
and uncertainties related to cybersecurity, conditions relevant to
real estate transactions, and numerous other factors such as laws
governing the operation of adult entertainment businesses,
competition and dependence on key personnel. 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.