Party City buys 16 franchise locations in Pennsylvania for $18.8 million
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 16 franchise stores in the Pennsylvania market.
The purchase price of approximately $18.8 million represents a fully synergized multiple of EBITDA of approximately four times. In 2017, this franchise operator reported sales of approximately $34 million. Prior to this acquisition, the company’s retail operations included 814 company-owned Party City stores and approximately 134 franchise stores.
According to Chief Executive Officer, James M. Harrison, “The acquisition of these 16 franchise group locations will solidify our position in Pennsylvania, where we now have a total of 30 company-owned stores. Accretive franchise acquisitions remain an integral part of our strategy to systematically increase our retail square footage, expand our presence in attractive, under-represented markets and deliver value for our shareholders.”
Party City Holdco Inc. is the leading party goods company by revenue in North America and, it believes, 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. The Company 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 approximately 950 specialty retail party supply stores (including 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.
— From Party City Holdco.
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