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.