HOUSTON, Jan. 14, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (NasdaqGM: RICK) today announced the acquisition by a subsidiary of Down in Texas Saloon gentlemen's club, expanding RCI's presence in the fast growing Austin, TX market. As part of the transaction, an RCI subsidiary also purchased the club's real estate.
"Down in Texas Saloon is a popular gentlemen's club known for its country theme and entertainers, nightly events, bottle service, full menu dining, and party business," said Eric Langan, RCI's President and CEO. "It is located in the same, very popular shopping and dining out stretch of Interstate 35 as one of our Rick's Cabaret gentlemen's clubs and Bombshells sports bar/restaurants."
Total consideration of $6.8 million consisted of $3.5 million for the club business and $3.3 million for its 3.5 acres of real estate. Payment was in the form of $1 million in cash and $1.4 million in seller financing at 6% annual interest, with the balance provided by commercial bank financing at a variable interest rate equal to the prime rate plus 2%, but in no event less than 6.5%.
Austin's growing economy has been driven by government, education and high-tech enterprises. The acquisition is in line with RCI's strategy of acquiring adult clubs on a highly selective basis in thriving markets where the company can establish a significant presence or expand an existing one.
About RCI Hospitality Holdings, Inc. (NasdaqGM: RICK)
With 44 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/
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.
SOURCE RCI Hospitality Holdings, Inc.