Party City Announces the Acquisition of 18 Franchise Stores in the Carolinas
March 16 2017 - 8:00AM
Business Wire
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 18 franchise stores in North Carolina and South
Carolina.
The purchase price of $31 million represents a multiple of
EBITDA of approximately 4.6 times, and the fully synergized
multiple is expected to be about 4 times. In 2016, this franchise
operator reported sales of approximately $44 million. Prior to this
acquisition, the Company’s retail operations included 765
Company-owned Party City stores and 164 franchise stores.
James M. Harrison, Chief Executive Officer, said “This latest
franchise acquisition expands our footprint in the Carolinas and
provides us with an opportunity to strengthen the brand integrity
of these locations and to explore opening additional company-owned
stores in this market over time. We will continue to evaluate
accretive franchise acquisitions going forward in order to expand
our company-owned footprint, improve the operational efficiencies
of these stores and enhance the customer experience.”
About Party City
Party City Holdco Inc. 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 150 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170316005599/en/
Party City Holdco Inc.Deborah Belevan, 914-784-8324VP of
Investor RelationsInvestorRelations@partycity.com
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