ELMSFORD, N.Y.--(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.