02.16.10
St Louis Strip Clubs: Rick’s Cabaret International, Inc. and VCG Holding Corp. Enter into Letter of …
Rick’s Cabaret International, Inc. and VCG Holding Corp. Enter into Letter of Intent to Merge to Form the Largest Publicly Traded North American Gentlemen’s Club Operator
HOUSTON & DENVER–(BUSINESS WIRE)–
Rick’s Cabaret International, Inc. (NASDAQ: RICK), VCG Holding Corp. (NASDAQ: VCGH) and Troy Lowrie and his affiliates have signed a letter of intent under which Rick’s Cabaret will acquire all of the outstanding shares of VCG Holding to form the largest publicly traded operator of upscale gentlemen’s clubs in North America, the two companies announced today.
Rick’s Cabaret currently operates 18 nightclubs in seven states while VCG Holding operates 20 clubs in ten states. The two companies had combined revenues of $131.3 million for the 12 month period ending September 30, 2009.
Eric Langan, President and CEO of Rick’s Cabaret International, said: “The combination of these two companies will result in a powerful operator that we believe would have generated earnings before income tax and depreciation (EBITDA) for the 12 months ended September 30, 2009 of approximately $25.3 …
See the full article from “Benzinga”