ELMSFORD, N.Y.--Party City Holdco Inc. (the “Company" or "Party City") (NYSE:PRTY), the leading vertically integrated party goods company in North America, announces that it has acquired Festival SA (“Festival”), a manufacturer of costumes and accessories.
Under the agreement the Company purchased the stock of Festival, which operates a 107,000 square foot manufacturing facility located in Madagascar, for a cash purchase price of approximately $5 million. In conjunction with the acquisition, the Company has entered into a supply agreement with Cesar, the previous owner, who will continue to purchase an agreed upon minimum level of product manufactured by Festival.
Jim Harrison, CEO of Party City Holdco Inc. said, “The Festival transaction is an important step in the Company’s long history of successful bolt-on acquisitions which have served to deepen our vertical business model, a key component of our growth strategy. This acquisition will allow us to source up to 15% of our costume and accessory requirements over the next several years and capture the full manufacturing-to-retail margin on these products.”
About Party City
Party City Holdco Inc. (the “Company” or “Party City Holdco”) is the leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue. The Company is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being a great retail brand, the Company is a global, world-class organization that combines state-of-the-art manufacturing and sourcing operations, and sophisticated wholesale operations complemented by a multi-channel retailing strategy and e-commerce retail operations. The Company is the leading player in its category, vertically integrated and unique in its breadth and depth. Party City Holdco designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Company’s retail operations include approximately 900 specialty retail party supply stores (including approximately 180 franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.