RCI Hospitality Holdings Acquires 821,000 Shares From ADW Capital Partners For $30M Or $36.54 Each For $8M In Cash And $22M In 2-Yr Seller Financing At 12%
Benzinga Newsdesk 11 months ago
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RCI Hospitality Holdings, Inc. (NASDAQ:RICK) today announced the acquisition of all the shares of RCI stock owned by ADW Capital Partners, L.P.The 821,000 shares were acquired for $30.0 million or $36.54 each for $8.0
RCI Hospitality Holdings, Inc. (NASDAQ:RICK) today announced the acquisition of all the shares of RCI stock owned by ADW Capital Partners, L.P.
The 821,000 shares were acquired for $30.0 million or $36.54 each for $8.0 million in cash and $22.0 million in two-year seller financing at 12%. The transaction closed today.
The Company said the transaction:
- Reduces its share count by about 9.5% to approximately 7,850,000 shares outstanding,
- Expedites its Back to Basics 5-Year Capital Allocation Plan to reduce shares to 7.5 million by fiscal year 2030, and
- Is accretive from day one to free cash flow per share based on static free cash flow for the trailing 12 months.
The transaction was approved by RCI's board of directors after receiving a fairness opinion from a third party business advisory firm that the purchase price was fair from a financial point of view to shareholders.