RCI Hospitality Holdings, Inc. announced the acquisition of the upscale Platinum Plus Gentlemen’s Club in Allentown, Pennsylvania. The purchase price for the club totaled $2.0 million.
The acquisition was financed with $1.5 million in cash and $0.5 million in seller financing at 7%. Separately, a long-term lease was signed for the property where the club operates.
This acquisition is the third club purchase since the launch of RCI’s "Back to Basics" Capital Allocation Plan and is in line with the company’s valuation target of 3-5 times annualized adjusted EBITDA for a club. Platinum Plus is located near the Allentown airport and the Bethlehem casino.
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