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. Pittsburghis 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
