SAUGET, Ill. — Two Sauget, Illinois, adult clubs have been sold as part of an $88 million deal for 11 businesses total.
Houston-based RCI Hospitality Holdings Inc. (Nasdaq: RICK) said this month it closed on the acquisitions, which include The Diamond Cabaret St. Louis, 1401 Mississippi Ave., and Country Rock Cabaret, 200 Monsanto Ave. The other clubs are located in North Carolina, Maine, Louisville, Indianapolis and Denver. Troy Lowrie of Lakewood, Colorado, was the seller in the deal, announced in July.
The transaction includes the clubs' intellectual property ($13 million), plus six related real estate properties ($18 million). Real estate involving the St. Louis clubs was not part of the deal.
RCI said the deal would increase its unit count by 23%, to 58 locations. The acquired locations generated approximately $40 million in revenue and $14 million in adjusted earnings before interest, taxes, depreciation and amortization in 2019, it said.
It added that it would spend $3 million in capital expenditures at the newly acquired clubs in the company's current fiscal 2022, "to significantly revitalize the clubs and improve the customer experience."
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