Rick’s Cabaret Purchases ED Publications for $1.2M

HOUSTON — Upscale gentlemen’s club chain Rick’s Cabaret has purchased ED Publications, parent company of Adult Store Buyer (ASB), Exotic Dancer and TEEZE magazines, plus two industry trade shows and 25 websites for $1.2 million.

Terms of the deal provide for an “additional earn-out of up to $2 million over the next three years, based on certain performance benchmarks of the media division.”

Don Wiatt, owner of ED Publications joins Rick’s Cabaret under a three-year agreement as president of its new media division, RCI Entertainment Media Holdings.

"In addition to their strong cash flow, the acquisition of these preeminent trade publications will enable Rick's Cabaret to create new marketing synergies with major industry product suppliers and new national advertising opportunities," said Eric Langan, president and CEO of the Rick’s Cabaret. "It also provides us with additional diversification of our revenue and income streams while remaining within our core competency."

The three magazines that are under the ED Publications umbrella are: Adult Store Buyer, which is published bimonthly and is distributed to more than 10,000 adult retailers; Exotic Dancer is circulated to 3,800 gentlemen’s clubs in the U.S. and was founded in 1991; and TEEZE, a bimonthly publication that serves retailers of lingerie and erotic apparel.

In addition to its publishing division, ED also owns the Storerotica trade show and the annual Gentlemen’s Club Owners Expo.

"After 17 years operating the adult nightclub industry's only national trade magazine and industry convention, I look forward to being associated with Rick's Cabaret, which as a major industry player, has an infrastructure in place that will allow us to take the service we offer to a much higher level," Waitt said. "We have very exciting new media ventures and national promotions in the works that will benefit Rick's Cabaret and the industry as a whole, as well as broaden the appeal of adult nightclub entertainment to consumers."

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