Party City adds 11 Maryland stores to its growing portfolio of company-owned locations
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 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.”