Party City acquires Australian balloon and party supplies wholesaler
Party City Holdco Inc. (NYSE: PRTY) announced March 3 that it has acquired Balloon Agencies, a wholesaler and distributor of balloons and party supplies in Brisbane, Australia.
The acquisition is valued at $1.9 million ($2.5 million AUD), which consists of $2 million AUD up front and $500,000 AUD conditional upon future business performance. The deal price represents 3-3.5 times EBITDA (earnings before interest, tax, depreciation and amortization) when fully synergized.
Jim Harrison, CEO of Party City said, “Balloon Agencies is the market leading distributor in Australia for specialty retail. We’ve been working with BA to reach the non-mass channel, with Amscan representing nearly half of their business. In addition to geographic expansion throughout Australia, this acquisition now gives us direct access into the specialty retail channel with BA’s established customer base and web business.”
According to the Balloon Agencies website, the company was “established since 1986 offering wholesale services to Party Shops, Online Retailers, Balloon Decorators, Event Companies, Florists and other retailers with balloons, party decorations, costumes and specialist industry supplies.”