Party City Announces the Acquisition of 21 Franchise Stores in Minnesota, North Dakota and Texas
ELMSFORD, N.Y., Sept. 12, 2018 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (NYSE:PRTY), the leading vertically integrated party goods company in North America, announced that it has entered into an agreement to acquire a master franchise group representing 21 franchise stores in the Minnesota, North Dakota and Texas markets.
The purchase price of approximately $22.9 million represents a fully synergized multiple of EBITDA of approximately four times. In 2017, this franchise operator reported sales of approximately $33.5 million. Prior to the acquisition, the Company’s retail operations included 839 company-owned Party City stores and approximately 118 franchise stores.
“Acquiring franchisee locations remains an excellent use of capital and a core component of our retail growth strategy,” said James M. Harrison, Chief Executive Officer. “We’re excited to expand our retail footprint and strengthen our presence in these attractive markets ahead of the important Halloween season.”
About Party City Party City Holdco Inc. is the leading party goods company by revenue in North America and, it believes, the largest vertically integrated supplier of decorated party goods globally by revenue. The Company is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being a great retail brand, the Company is a global, world-class organization that combines state-of-the-art manufacturing and sourcing operations, and sophisticated wholesale operations complemented by a multi-channel retailing strategy and e-commerce retail operations. The Company is the leading player in its category, vertically integrated and unique in its breadth and depth. The Company designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Company’s retail operations include approximately 950 specialty retail party supply stores (including franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.
Contacts Investor Relations ICR Farah Soi and Rachel Schacter 203-682-8200 InvestorRelations@partycity.com
Media Relations ICR Brittany Fraser and Jim Furrer 203-682-8200 PartyCityPR@icrinc.com