HOUSTON, Sept. 13, 2018 /PRNewswire/ -- RCI
Hospitality Holdings, Inc. (Nasdaq: RICK) today announced that a
subsidiary has signed a definitive agreement to acquire all of the
issued and outstanding shares of common stock of the company that
owns VIP's Gentlemen's Club in Chicago for $6.5
million. RCI also announced a definitive agreement for a
subsidiary to acquire the club's real estate for $4.0 million.
VIP's is one of only three gentlemen's clubs in Chicago, is the only one with a full liquor
license, and has grandfathered use. The 10,000-square-foot upscale
club has been one of the top in the Midwest since opening in 1993.
Open until 4 AM Sunday through Friday nights and 5 AM on Saturday
nights, VIP's is located near Chicago's chic Lincoln
Park neighborhood and is only minutes away from Chicago's renowned North Michigan Avenue and
Gold Coast.
"We're excited about VIP's joining our portfolio of high-quality
clubs in top 20 metropolitan markets," said Eric Langan, President & CEO of RCI. "VIP's
fits perfectly in line with our goal of acquiring profitable,
cash-flowing number one locations. With its ability to generate
$2 million annually in Adjusted
EBITDA, the acquisition also fits our capital allocation strategy
in terms of valuation and cash on cash return."
Under the terms of the agreement, consideration for the club is
$2.0 million in cash and $4.5 million in seller financing. Consideration
for the real estate, which is unencumbered and consists of VIP's
building and land at 1531 N. Kingsbury St., Chicago, IL, 60642, is $4.0 million in cash. Closing is subject to
transfer of all necessary permits, licenses and other
authorizations, and usual closing conditions for transactions of
this kind, including due diligence.
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.