Canadian Tire has completed the acquisition of Canadian retail business and its assets US-based party goods retailer Party City Holdco.

Announced in August, the deal includes the acquisition of 65 Party City retail locations in the country.

The company closed the deal for an all-cash transaction of approximately C$174m ($130.55m), which will be used by Party City to pay down debt as part of its strategic goal to reduce its net debt leverage over the next several years.

As part of the acquisition, both companies have entered a long-term wholesale supply agreement with an initial term of ten years.

The supply agreement will allow Amscan, Party City’s wholesale business, to offer consumer products to Canadian Tire.

During the ten-year term, Party City is planning to double Amscan’s average annual wholesale shipments into the Canadian marketplace.

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By GlobalData

Party City Holdco chief executive officer James M Harrison said: “We are pleased to have completed this transaction with Canadian Tire, which will fuel the expansion of the Party City brand and our distribution throughout Canada.

“This partnership and long-term wholesale supply agreement reinforces our position as the North American leader in the party goods space. We look forward to a long and mutually beneficial commercial relationship with one of Canada’s pre-eminent retailers.”

Last year, Party City acquired 16 franchise stores in Pennsylvania during July, and 11 stores in Maryland during March.