Canadian Tire To Buy 65 Party City Stores For $174 Million
Canadian Tire just announced that they will be purchasing Party City’s Canadian business for $174.4 million (including about $40 million in inventory).
Recently, Party City stated that they will be closing down. They are a leading, one-stop shopping destination for party supplies and an expert in seasonal and micro-seasonal celebrations. They have 65 Canadian retail stores across seven provinces.
After the purchase, Canadian Tire will become the party supply destination as Party City’s product assortments will be made available nationally across 500 Canadian Tire Retail stores and online at Canadiantire.ca. Canadian Tire will expand Party City’s standalone store network and build store-in-store, pop-ups and “in-line” aisles across Canadian Tire Retail stores.
People can now also earn Triangle Rewards when they buy party supplies.
“We believe the Party City-Canadian Tire partnership will drive more trips, improve our offers in micro seasons, strengthen our connection with millennials and Canadian families and expand the appeal of Triangle Rewards,” said Canadian Tire Corporation's EVP of Retail Allan MacDonald.
Canadian Tire states that their unparalleled retail capabilities and extensive store network positions it to double Party City’s Canadian retail sales to $280 million by 2021.
“Canadian Tire retail has an unbeatable store network, retailing capabilities and customer loyalty. These assets, combined with our wholesale supply agreement, positions them well to grow the Party City brand in Canada,” said Party City Holdco Inc.'s Chief Executive Officer Jim Harrison.
Canadian Tire has agreed to purchase Party City’s brand, store network and employee base, leaseholds and fixed assets in Canada for $174.4 million. The acquisition is expected to close in the third quarter of 2019.