US-based party goods retailer Party City Holdco (Party City) has announced an acquisition of 11 franchise stores in Maryland.
Party City have purchased the the franchise group for approximately $14m, which represents a fully synergised multiple of EBITDA of approximately four times. Previous to this acquisition, the company retail operations included 803 company-owned Party City stores and 148 franchise stores.
Last year, the franchise operator reported sales of approximately $26m.
Party City chief executive officer James Harrison 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 the brand integrity and operational efficiency while enhancing the overall customer shopping experience and growing value for our shareholders.”
Party City has previously signed an agreement to acquire 18 franchise stores in North Carolina and South Caroline for $31m.
The party goods retailer also announced the $5.5m aquisition of Oklahoma-based party store MG Novelty in December last year.
Under the deal, Party City has agreed to acquire seven retail stores under the name ‘Party Galaxy’ in the Oklahoma City metro area.
Party City is reported to have been in the business for more than three decades by offering party goods such as paper and plastic tableware, metallic and latex balloons, costumes, accessories, novelties, gifts and stationery worldwide.
The company’s retail operations include more than 900 party supply stores in the US and Canada.