RCI Announces Acquisition of Platinum West Gentlemen’s Club in West Columbia, SC

Rhea-AI Summary

RCI Hospitality Holdings (Nasdaq: RICK) has acquired Platinum West Gentlemen's Club in West Columbia, South Carolina for $8.0 million. The purchase includes $3.75 million in cash and $2.5 million in seller financing at 7% for the club, plus $1.75 million cash for real estate.

The acquisition aligns with RCI's valuation target of 3-5x annualized adjusted EBITDA and marks their second club purchase under their new 5-Year 'Back to Basics' Capital Allocation Plan. The 10,000 square-foot venue is strategically located near Columbia Metropolitan Airport, downtown Columbia, and Fort Jackson.

Platinum West, the only upscale adult nightclub in central South Carolina, operates with extended hours throughout the week and maintains an established management team. The acquisition expands RCI's presence to seven clubs in Southeast states.

Positive

• Strategic expansion to 7 clubs in Southeast states
• Acquisition meets company's target valuation metrics
• Property includes real estate ownership
• Only upscale adult nightclub in central South Carolina
• Prime location near airport, downtown, and military base
• Established management team in place

Negative

• Additional debt through $2.5M seller financing at 7% interest

HOUSTON--(BUSINESS WIRE)-- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced closing on the acquisition of Platinum West Gentlemen’s Club in West Columbia, South Carolina, the only upscale adult nightclub in the central part of the state.

The purchase price totaled $8.0 million, consisting of $3.75 million cash and $2.5 million seller financing at 7% for the club, and $1.75 million cash for associated real estate. The purchase price is in line with RCI’s acquisition valuation target of 3-5x annualized adjusted EBITDA for a club and fair market value for its real estate.

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., commented: “This is another exciting acquisition. It fits in well with our other high-end clubs and is the second club purchase since the recent launch of our 5-Year ‘Back to Basics’ Capital Allocation Plan.”

“Platinum West is a well-established business with a seasoned management team. It adds to our six other clubs in Southeast states and should benefit from our marketing, purchasing, and systems know-how.”

The 10,000 square-foot establishment located at 1995 Old Dunbar Road, West Columbia, SC, is 5 minutes by car from Columbia Metropolitan Airport, 10 minutes from downtown Columbia, and 25 minutes from Fort Jackson, the U.S. Army's main facility for basic combat training.

Platinum West is open Monday through Thursday from 11:00 a.m. to 4:00 a.m., Friday and Saturday from 11:00 a.m. to 6:00 a.m., and Sunday from 4:00 p.m. to 4:00 a.m. Visit https://platinumwestcolumbia.com/.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @RCIHHinc)

With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars-restaurants. See all our brands at 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, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, and (vi) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2024, as well as its other filings with the U.S. Securities and Exchange Commission. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250407169169/en/

Media & Investor Contacts

Gary Fishman and Michael Wichman at 212-532-3232 or gfishman@pondel.com and mwichman@pondel.com

Source: RCI Hospitality Holdings, Inc.

FAQ

How much did RCI Hospitality (RICK) pay for Platinum West Gentlemen's Club?

RCI Hospitality paid $8.0 million total, with $3.75 million cash and $2.5 million seller financing for the club, plus $1.75 million cash for real estate.

What are the operating hours of the newly acquired Platinum West club?

Platinum West operates Monday-Thursday 11AM-4AM, Friday-Saturday 11AM-6AM, and Sunday 4PM-4AM.

How does the Platinum West acquisition align with RCI's valuation strategy?

The purchase price aligns with RCI's acquisition valuation target of 3-5x annualized adjusted EBITDA for clubs and fair market value for real estate.

Where is the newly acquired Platinum West club located and what are its key proximity advantages?

Located at 1995 Old Dunbar Road, West Columbia, SC, it's 5 minutes from Columbia Metropolitan Airport, 10 minutes from downtown Columbia, and 25 minutes from Fort Jackson.