Party City buys 21 franchise stores in Texas, Minnesota and North Dakota
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 21 franchise stores in the Minnesota, North Dakota and Texas markets.
The purchase price of approximately $22.9 million represents a fully synergized multiple of EBITDA of approximately four times. In 2017, this franchise operator reported sales of approximately $33.5 million. Prior to the acquisition, the company's retail operations included 839 company-owned Party City stores and approximately 118 franchise stores.
"Acquiring franchisee locations remains an excellent use of capital and a core component of our retail growth strategy," said James M. Harrison, Chief Executive Officer. "We're excited to expand our retail footprint and strengthen our presence in these attractive markets ahead of the important Halloween season."