RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced subsidiaries have completed the acquisition of Blush Gentlemen's Club & Sports Bar and related real estate at 135 9th Street and 901-903 Penn Avenue in Pittsburgh on the same terms as previously announced.
"We're pleased to have Blush join our portfolio of quality establishments in top metro markets," said Eric Langan, RCI's President & CEO. "With its ability to generate $3 million-plus annually in adjusted EBITDA, Blush is a profitable, cash-flowing number one club in a market that is home to great sports teams, leading universities, and well-established and emerging industries."
The 16,000 square-foot upscale, recently remodeled 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 and features a full liquor license and restaurant. Located in the Cultural District, Blush is close to the convention center, stadiums, and hotels, and is open until 2 AM Sunday through Thursday nights and 3 AM on Friday and Saturday nights.
Consideration for the club was $2.5 million in cash and $7.5 million in seller financing (consisting of a $2.0 million, 7%, two-year balloon note and a $5.5 million, 8%, fully amortizing, 10-year note). Consideration for the real estate was $5.0 million in cash for the two connected buildings. One includes the club while the other benefits from long-term, income producing, retail tenants.
The cash portion of the transactions was funded through available cash, which includes cash from operations, proceeds from a $5.0 million unsecured bank term loan, and third-party debt financing, as previously announced.
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
