RCI Hospitality Closes $2 Mln Acquisition Of Platinum Plus Club In Allentown

(RTTNews) - 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.