RCI Announces Acquisition of Blush Gentlemen's Club & Sports Bar of Pittsburgh
HOUSTON – November 6, 2018 – 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.
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.
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