HOUSTON, Feb. 9, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (NasdaqGM: RICK) today announced a subsidiary has signed a definitive agreement to acquire The Seville Club of Minneapolis, a popular gentlemen's club known for its comfortable and elegant atmosphere and famous downtown location. A separate RCI subsidiary has also signed a definitive agreement to purchase the club's real estate.
Total consideration of $8.5 million will consist of $4.5 million for the assets of the club business and $4.0 million for its historic renovated building at 15 Glenwood Avenue North. Payment will be made through a combination of bank and seller financing and cash. The transactions are subject to usual and customary closing conditions for transactions of this nature.
"The Seville Club expands our presence in the attractive Minneapolis market, enabling us to own three of the top locations," said Eric Langan, RCI's President and CEO. RCI subsidiaries already own Rick's Cabaret Minneapolis and Downtown Cabaret, two of the company's top revenue generating clubs.
"The Seville Club has been successful for more than a decade," Mr. Langan continued. "It was voted the best gentlemen's club by the local City Pages seven years running—and has a seasoned local management team.
"It is located directly across from Target Center, one block from Target Field, and in the heart of the Downtown Minneapolis Entertainment and Theater Districts. In the direct vicinity, there are approximately 7,000 parking spaces with skyway systems to both sports stadiums and lodging.
"It attracts gorgeous entertainers. The restaurant features modern interpretations of classic American dishes, the bar offers fine wines and spirits, and premium cigars are available for its smoking patio."
About RCI Hospitality Holdings, Inc. (NasdaqGM: RICK)
With 45 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/
RCI Hospitality in 2015 is celebrating the 20th anniversary of its IPO – two decades of innovation in the adult club segment of the hospitality industry.
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 the operational and financial results of our Web sites, 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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SOURCE RCI Hospitality Holdings, Inc.
