RCI Hospitality Holdings has entered into a definitive agreement through its subsidiary to purchase Blush Gentlemen’s Club & Sports Bar for $15m.
The $15m deal includes the acquisition of the assets of the bar, as well as related real estate.
Based in Pittsburgh, Blush holds a full liquor licence to offer a range of alcoholic beverages along with food.
RCI Hospitality Holdings president and CEO Eric Langan said: “Blush fits perfectly in line with our goal of acquiring profitable number one locations with a long history of cash flow.
“As a $3m plus in EBITDA club, the acquisition fits our capital allocation strategy in terms of valuation and cash on cash return.
“Pittsburgh is a new top 20 metropolitan market for us. It is a major business and financial centre, and convention city. With the Pittsburgh Steelers, Pirates and Penguins, it is also one of the greatest sports markets in the country. We look forward to Blush’s long-running management team joining our organisation.”
As part of the deal, RCI’s subsidiary will pay $10m for the club consisting of a $2.5m cash payment and $7.5m in seller-financing. The remaining $5m will be paid in cash for the real estate.
The real estate assets covered under the deal include two connected buildings. The transaction is subject to usual closing conditions and is expected to close on or before 31 October this year.
RCI subsidiaries own more than 40 Gentlemen’s clubs, sports bars and restaurants across the US including New York City, Miami, Charlotte, Houston, Minneapolis and St. Louis.
Its brands include Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie’s Cabaret, and Scarlett’s Cabaret.