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Canadian Tire to buy unit of THL-backed Party City for $174 mln

Canadian Tire Corp Ltd (TSX: CTC, CTC.A) has agreed to acquire the Canadian business of Party City, a Rockaway, New Jersey-based specialty party goods retailer.

Canadian Tire agreed to pay $174.4 million for the business, which has 65 retail stores in seven provinces. The deal is expected to close in Q3 2019.

Canadian Tire, a Toronto-based provider of retail goods and services, said the purchase will make it a one-stop shopping destination for party and celebration needs. It plans to expand Party City’s store network in Canada.

Party City was acquired in 2012 by U.S. private equity firm Thomas H. Lee Partners (THL) for US$2.69 billion. The company went public in 2015, with THL remaining a shareholder.


Canadian Tire Corporation to Acquire Party City’s Canadian Business

Aug 08, 2019

Acquisition makes Canadian Tire Corporation Canada’s #1 party supply and celebration destination

TORONTO, Aug. 8, 2019 /CNW/ – Canadian Tire Corporation, Limited (TSX:CTC,TSX:CTC.A) (CTC) announced today that it has entered into an agreement to purchase Party City’s Canadian business for $174.4 million (including ~$40 million in inventory). Party City is a leading, one-stop shopping destination for party supplies and an expert in seasonal and micro-seasonal celebrations, with 65 Canadian retail stores in seven provinces.

Strategic Rationale for Acquisition:

Strengthens CTC’s Marketplace

CTC will immediately become the #1 party supply destination – a one-stop-shop for all consumers’ party and celebration needs; cementing Canadian Tire as “Canada’s Fun Store”
Party City’s exclusive and unique product assortments will be made available nationally across 500 Canadian Tire Retail (CTR) stores and online at
Adds the leading party supply brand to Triangle Rewards, further expanding and strengthening the program
CTC will expand Party City’s standalone store network in Canada, and build store-in-store, pop-ups and “in-line” aisles across CTR

Creates a New Platform for Growth

Acquiring the leading brand in an underserved, high margin category for CTC
With expertise in seasonal and micro-seasonal celebrations, Party City complements CTC’s existing family fun categories and its role in preparing Canadians for the Joys of Life in Canada
Provides access to Party City’s extensive catalogue, including exclusive and proprietary designs and licensed products, such as Disney
CTC’s unparalleled retail capabilities and extensive store network positions it to double Party City’s Canadian retail sales to $280 million by 2021

Strengthens Connection with Millennials and Canadian Families

Gains a powerful customer segment with millennials and Canadian families, expanding the appeal of Triangle Rewards
Adds a trip-driving category, with the average household hosting four parties or celebrations per year
Significant opportunity to grow Triangle Rewards engagement and membership through Party City’s appeal to these high lifetime value customer segments

Strong Financial Fundamentals

Immediately accretive to EBITDA, ROIC and diluted EPS
Combination will accelerate Party City’s growth in Canada and unlock operational synergies
CTC expects its estimated EBITDA attributable to Canadian Tire’s acquisition of Party City’s business in Canada to more than double, yielding an implied EBITDA multiple in the mid to low single digits by 2021

“Strengthening our marketplace is at the heart of our growth strategy and we are excited to welcome Party City into the Canadian Tire family of companies. 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 Allan MacDonald, EVP, Retail, Canadian Tire Corporation. “With our extensive CTR store network, unparalleled retail capabilities and Party City’s unique assortment, we are well-positioned to more than double Party City Canada’s business by 2021.”

“CTR 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 Jim Harrison, Chief Executive Officer, Party City Holdco Inc.

Transaction Details
CTC has agreed to purchase Party City’s brand, store network and employee base, leaseholds and fixed assets in Canada for $174.4 million (including ~$40 million in inventory). The acquisition is expected to close in Q3 2019 and is subject to the usual closing conditions. CTC has ample financial flexibility to fund the acquisition.

Investment Community Conference Call Details
Canadian Tire Corporation will conduct a conference call to discuss information included in this news release and related matters at 8:00 a.m. ET on August 8, 2019. The dial-in number is 416-340-2216 or 1-800-273-9672. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at, and will be available through replay at this website for 12 months. For more information related to this transaction, please visit

Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) or “CTC”, is a family of businesses that includes a Retail segment, a Financial Services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark’s, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere, which offer the best active wear brands. The approximately 1,700 retail and gasoline outlets are supported and strengthened by our Financial Services division and the tens of thousands of people employed across Canada and around the world by the Company and its local dealers, franchisees and petroleum retailers. In addition, Canadian Tire Corporation owns and operates Helly Hansen, a leading global brand in sportswear and workwear based in Oslo, Norway. For more information, visit

Media: Jane Shaw,
Investors: Lisa Greatrix,