Rick’s Cabaret Announces More Acquisitions
Rick’s Cabaret International, a publicly traded corporation specializing in owning and operating adult entertainment establishments throughout the United States (NASDAQ symbol: RICK), has announced that they have signed a letter of intent to purchase a strip club located somewhere in the Southeast.
The acquisition target’s name and location have not been revealed. Rick’s is keeping it confidential for now. Per the terms of the letter of intent, the unnamed club will be acquired for $25 million and is expected to generate annual revenues of $18 million and earnings before interest, tax, depreciation and amortization (EBITDA) of $8 million per year. The deal is contingent on due diligence, financing, and the transfer of pertinent licenses.
In the 12-month period ending June 30th, 2007, Rick’s had revenues of $29 million and EBITDA of $4.4 million. This is a sizeable acquisition that will nearly double Rick’s annual revenue and EBITDA.
Also this week Rick’s announced that it will be buying a 51% ownership stake in The End Zone, Inc., which owns and operates Crazy Horse Too in Philadelphia, PA. After the deal closes the club will be renamed under the Rick’s Cabaret brand. Rick’s plans to add an upscale steakhouse to the club.