Party City Holdco Inc. acquires 18 more franchise stores in southern U.S.
Party City Holdco Inc. announced Jan. 6 the acquisition of 18 franchise stores in the southern U.S., including in Alabama, Florida, Louisiana and Mississippi.
The purchase price is reported to be between $14.5 and $15 million. The acquisition expands Party City’s company-owned retail store total, which was 750 prior to the deal. There are also 184 franchise Party City locations.
James Harrison, chief executive officer for Party City Holdco, said the acquiring more locations from franchisees is part of the company’s overall strategy.
“Acquiring franchise stores over time is an integral component of our strategy to invest in growth opportunities at attractive multiples of earnings,” Harrison said in a press release. “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.”