Party City Announces the Acquisition of 18 Franchise Stores

Party City Holdco Inc. (NYSE: PRTY), the leading, vertically integrated party goods company in North America, announces that it has entered into an agreement to acquire a master franchise group representing 18 franchise stores in Louisiana, Alabama, Mississippi and Florida. Prior to this transaction, the Company’s retail operations included 750 Company-owned Party City stores and 184 franchise stores.

This franchise operator reported estimated 2016 sales of approximately $34 million. The purchase price is estimated to be $14.5 – $15.0 million, which represents a multiple of EBITDA of approximately 4.5 times, and the fully synergized multiple is expected to fall below 4 times.

James M. Harrison, Chief Executive Officer said “Acquiring franchise stores over time is an integral component of our strategy to invest in growth opportunities at attractive multiples of earnings. This acquisition gives the Company total ownership of the Louisiana and Alabama markets, creating an opportunity to open additional company-owned stores over time and strengthen the brand integrity of these locations, improving the experience for our customers.”

About Party City

Party City Holdco Inc. (the “Company” or “Party City Holdco”) is the leading party goods company by revenue in North America and, we believe, 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. Party City Holdco 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 over 900 specialty retail party supply stores (including approximately 160 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170106005723/en/

Party City Holdco Inc.Deborah Belevan, 914-784-8324VP of Investor RelationsInvestorRelations@partycity.com

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