January 6, 2017: Party City acquires 18 franchise stores for $14.5 million to $15 million. These stores had an estimated 2016 sales of approximately $34 million. Prior to this transaction, the company’s retail operations included 750 Company-owned Party City stores and 184 franchise stores.
The CEO said, “Acquiring franchise stores over time is an integral component of our strategy to invest in growth opportunities at attractive multiples of earnings. 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.”
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Party City Holdco Inc. is the leading party goods retailer in North America and the largest vertically integrated supplier of decorated party goods globally.