ELMSFORD, N.Y., Oct. 01, 2019 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (NYSE: PRTY) (“Party City” or the “Company”), today announced that it has completed the previously announced sale of its Canadian retail business to Canadian Tire Corporation, Limited (TSX: CTC) (“Canadian Tire”). Through the transaction, Canadian Tire acquired Party City’s 65 Canada–based 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.
In connection with the sale, Party City and Canadian Tire have also agreed to a long-term wholesale supply agreement, with an initial term of 10 years. Under the terms of the supply agreement, Party City’s wholesale business, Amscan Inc. (“Amscan”), will provide Canadian Tire with consumer products and the Company expects to effectively 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 M. Harrison, Chief Executive Officer of Party City Holdco Inc. “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.”
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Party City’s expectations regarding wholesale shipments into Canada as well as the anticipated use of the proceeds from the transaction to pay down debt. The forward-looking statements contained in this press release are based on management's good-faith belief and reasonable judgment based on current information, and these statements are qualified by important risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those forecasted or indicated by such forward-looking statements. These risks and uncertainties include: our ability to compete effectively in a competitive industry; fluctuations in commodity prices; our ability to appropriately respond to changing merchandise trends and consumer preferences; successful implementation of our store growth strategy; decreases in our Halloween sales; the impact of helium shortages on our financial performance; disruption to the transportation system or increases in transportation costs; product recalls or product liability; economic slowdown affecting consumer spending and general economic conditions; loss or actions of third party vendors and loss of the right to use licensed material; disruptions at our manufacturing facilities; and the additional risks and uncertainties set forth in “Risk Factors” in Party City’s Annual Report on Form 10-K for the year ended December 31, 2018 and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, outlook, guidance, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Except as may be required by any applicable laws, Party City assumes no obligation to publicly update or revise such forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments or otherwise.
About Party City
Party City Holdco Inc. 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 over 900 specialty retail party supply stores (including 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.
Contacts
Investor Relations
ICR
Rachel Schacter
203-682-8200
InvestorRelations@partycity.com
Media Relations
ICR
Sara Davis
203-682-8200
PartyCityPR@icrinc.com
