US party retail chain Party City has announced that it has now fully completed the sale of its Canadian retail business to Canadian Tire Corporation.
Following the transaction, Canadian Tire has acquired Party City’s 65 Canadian retail store locations in an all-cash transaction valued at approximately CAD$174 million. The proceeds from this transaction will primarily be used to pay down debt.
Party City and Canadian Tire have also agreed to a long-term wholesale supply agreement which will see Party City’s wholesale business, Amscan, providing Canadian Tire with consumer products for the next ten years. The company expects to double Amscan’s average annual wholesale shipments into the Canadian marketplace during the term of the agreement.
“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,” said James Harrison, Party City’s chief executive officer.
He continued: “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.”