North American party product retailer Party City has acquired a master franchise group representing 11 of its franchise stores in the Maryland market.
The news came at the same time as the party supplies retailer reported fiscal Q4 and full-year 2017 earnings that beat analyst estimates, resulting in a 15% rise in share prices towards the end of last week (Friday 9 March). Sales also outperformed analysts’ estimates.
Before this most recent acquisition – which had a purchase price of approximately $14million – Party City’s retail operations totalled 803 company-owned Party City stores and 148 franchise stores. The franchise operator has reported sales of approximately $26 million in 2017.
“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,” said ceo James M. Harrison.
“We look forward to continuing to evaluate opportunities for accretive franchise acquisitions in the future, as a part of our strategy to improve brand integrity and operational efficiency, while enhancing the overall customer shopping experience and growing value for our shareholders.”
During 2017, Party City opened 16 new stores, acquired 36 franchise stores and eight independent stores and closed seven stores.