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.
