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 the master franchise group representing 11 franchise stores in the Maryland market.
The purchase price of approximately $14.0 million represents a fully synergized multiple of EBITDA of approximately four times. In 2017, this franchise operator reported sales of approximately $26 million. Prior to this acquisition, the Company’s retail operations included 803 company-owned Party City stores and 148 franchise stores.
James M. Harrison, Chief Executive Officer said, “The acquisition of this franchise group solidifies our position in this highly attractive market, where we now have a total of 21 company-owned stores. We look forward to continuing to evaluate opportunities for accretive franchise acquisitions in the future, as a part of our strategy to improve brand integrity and operational efficiency while enhancing the overall customer shopping experience and growing value for our shareholders.”
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.