HOUSTON, Jan. 22, 2025 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (NASDAQ:RICK) today announced closing on the acquisition of Flight Club, the premier gentlemen's club in the Detroit market, 5 miles from Detroit Metro Airport and 20 miles from downtown, casinos and major sports venues.
The purchase price totaled $11.0 million, consisting of $3.0 million cash and $5.0 million seller financing at 8.0% for the club, and $3.0 million cash for associated real estate. The company expects the acquisition to contribute an estimated $2.0 million in annualized adjusted EBITDA.
Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., commented: "This is an exciting acquisition, fits in well with our other high-end clubs with restaurants in major cities, and is the first club purchase since the recent launch of our 5-Year 'Back to Basics' Capital Allocation Plan. Flight Club is a well-established business that should benefit from our marketing, purchasing and systems know-how."
The two-story, 10,000-square foot establishment is located at 29709 Michigan Avenue, Inkster, MI. Established in 1997 and recently renovated, Flight Club features upscale entertainment, a Corvette sports car that descends from the ceiling, valet parking, easy access to and from major freeways, and a five-star kitchen.
Flight Club is open weekdays from 11:30 a.m. to 2:00 a.m., Saturday 1:00 p.m. to 2:00 a. m., and Sunday 7:00 p.m. to 2:00 a.m. Visit https://flightclubdetroit.com/ or https://www.instagram.com/theflight_club/
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 of 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, (vi) the impact of the COVID-19 pandemic, and (vii) 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.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or [email protected] and [email protected]
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SOURCE RCI Hospitality Holdings, Inc.