WASHINGTON (dpa-AFX) - RCI Hospitality Holdings, Inc. (RICK) has completed the $2 million acquisition of Platinum Plus Gentlemen's Club in Allentown, PA, near the city's airport and Bethlehem's casino.
The deal included $1.5 million in cash and $0.5 million in seller financing at 7%, aligning with RCI's target valuation of 3-5x annualized adjusted EBITDA. A long-term property lease was also secured.
This marks RCI's third acquisition under its 5-Year 'Back to Basics' Capital Allocation Plan and complements the recent purchase of Platinum West in South Carolina.
According to CEO Eric Langan, Platinum Plus brings a strong, experienced management team and expands RCI's Northeast presence to seven clubs. The current management will continue to support the transition and future acquisitions.
RICK is currently trading at $40.53, or 2.18% higher on the NasdaqGM.
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