RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the signing of definitive agreements to acquire 11 adult nightclubs, nine of which are controlled by club entrepreneur Troy Lowrie of Lakewood, CO; six related real estate properties; and associated intellectual property.
The establishments, all fully open, will expand RCI’s geographic footprint with five locations in Denver, CO; two near St. Louis, MO; and one each in Indianapolis, IN, Louisville, KY, Raleigh, NC, and Portland, ME.
The collective acquisition will be RCI’s largest since its 1995 founding and is anticipated to be accretive in year one. The clubs generated approximately $40 million in revenue and $14 million in adjusted EBITDA in their fiscal year ended December 31, 2019. For the six months ended March 31, 2021, RCI reported revenues of $82.5 million and adjusted EBITDA of $22.3 million. The collective acquisition also is one of the largest in the history of the gentlemen’s club industry.
Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., said, “This is exactly the type of sizeable transaction for which we have been searching. All the clubs are well-established and proven cash generators. Troy and his team should be recognized for their accomplishments. We believe the quality of the clubs’ licenses and locations enhance the value of the collective acquisition to us.”
Mr. Lowrie said, “These clubs have been my father’s and my life’s work. We’re pleased to have realized their value. Their future will now be in the best hands in the industry. We look forward to being significant RCI shareholders and participating in the company’s long-term growth.”
The following clubs were acquired by RCI in this landmark deal:
Mile High Men’s Club Denver, CO
PT’s Showclub Centerfold Denver, CO
The Diamond Cabaret Denver Denver, CO
PT’s Showclub Denver Denver, CO
La Boheme Gentlemen’s Cabaret Denver, CO
PT’s Showclub Indianapolis Indianapolis, IN
PT’s Showclub Louisville Louisville, KY
PT’s Showclub Portland Portland, ME
The Men’s Club of Raleigh Raleigh, NC
The Diamond Cabaret St Louis Sauget, IL
Country Rock Cabaret Sauget, IL
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, Chicago, Dallas/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, and Scarlett’s Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. For more information, please visit RCI’s website.
