RICK - RCI Hospitality to acquire 5 adult nightclubs for $66.5M

• RCI Hospitality Holdings ( NASDAQ: RICK ) is set to acquire two Baby Dolls and three Chicas Locas adult nightclubs and their associated real estate in the Dallas-Fort Worth and Houston markets for $66.5M.
• The consideration consists of $25M in cash, a 10-year, 7% $25.5M seller financing notes and 200,000 restricted shares based on a per share price of $80.
• The company has signed definitive agreements for the acquisition, second largest for RCI and one of the largest in the history of the adult nightclub industry.
• The acquisition is expected to contribute ~$11M in EBITDA in the first year, with the metric expected to grow to $14M-$16M annually.
• The acquisition is expected to close in January.
• RICK shares were trading +0.24% pre-market.
• Source: Press Release

For further details see: