Comprehensive M&A data with integrated detailed company information

RCI picks up Chicago-based gentlemen’s club
Posted on Friday, 14 September 2018 12:26
RCI Hospitality Holdings is buying Chicago-based VIP’s Gentlemen’s Club for USD 6.50 million, as well its real estate for an additional USD 4.00 million.

The purchase price for the business comprises USD 2.00 million in cash and a further USD 4.50 million in seller financing.

A deal remains subject to closing conditions, as well as necessary permits, licenses and other authorisations.

Eric Langan, chief executive of RCI, said: “VIP's fits perfectly in line with our goal of acquiring profitable, cash-flowing number one locations.

“With its ability to generate USD 2.00 million annually in Adjusted EBITDA, the acquisition also fits our capital allocation strategy in terms of valuation and cash on cash return.”

Based within Lincoln Park’s upscale district, VIP will add to the buyer’s portfolio of high-end metropolitan nightclubs, which include Rick’s Cabaret, Vivid Cabaret, Club Onyx, and Bombshells.

Formed in 1983, RCI claims to be the leading player in gentlemen’s clubs, sports bars, and restaurants in the US, with a portfolio of over 40 sites in New York, Miami, Charlotte, Dallas and Houston, among others.

According to Zephyr, the M&A database published by Bureau van Dijk, it bought adult-entertainment bar and tavern operator JW Lee in one of its largest acquisitions in the last five years, for USD 25.95 million in 2017.

VIP claims to be the leading adult nightclub in Chicago, and is the only venue of its kind to have a full liquor license.

It has a staff of over 100 entertainers featured within a 10,000 square-foot site.

Zephyr shows that there have been 42 deals targeting drinking places (alcoholic beverages) providers announced since the beginning of 2018.

In the largest of these, Immersion Capital bought a minority stake in JD Wetherspoon for GBP 63.42 million.

Other companies targeted in this sector include Wear Inns, Greene King, Sloshedi, and Mission Mars, among others.

© Zephus Ltd