HOUSTON, TX – The Rick’s Cabaret empire is expanding. The company signed definitive documents to acquire the Silver City Cabaret, a Dallas adult nightclub on Stemmons Freeway and the underlying real estate, which includes a building the company plans to convert into an entertainment complex.
The transaction, which also includes the purchase of a separate piece of property in Dallas that is licensed for an adult business, is intended to close on or before January 2, 2012.
“We are very enthusiastic about the potential to develop the Silver City location at 7501 North Stemmons Freeway near Love Field, which will become a great entertainment and retail destination,” said Eric Langan, president and CEO of Rick’s Cabaret. Only 14,000 square feet of the 54,000 square foot building is currently in use and we will develop the rest to include a Tootsie’s style Knockers Sports Bar and an after-hours nightclub. The Silver City Cabaret, after we have rebranded it, will become an important part of the terrific complex of clubs we have assembled in the Dallas-Ft. Worth Metroplex.”
The purchase will bring to nine the number of clubs the company owns in the Dallas-Ft. Worth Metroplex and the number of clubs nationwide to 24.
Subsidiaries of Rick’s Cabaret will pay current owners a total of $12 million for the Silver City property and a separate property just off the busy I-35 corridor that includes a sexually oriented business license, which the company intends to develop in the future. The aggregate payment will be in the form of $1.5 million in cash plus promissory notes in the total aggregate amount of $10.5 million that are payable over 11 years at an adjustable interest rate of 5.5 percent.
Closing on the transaction is subject to due diligence and transfer of appropriate licenses and permits and other terms and conditions customary for an acquisition of this type. Further details of the proposed transaction are available in the Form 8-K filed with the SEC.
