Canadian Tire to Acquire Party City’s Canadian Business; Acquisition makes Canadian Tire Corporation Canada’s #1 party supply and
celebration destination

TORONTO–Canadian Tire Corporation, has agreed 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.

The retailer says part of the strategic rationale for acquisition is that it 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

In addition, it adds the leading party supply brand to Triangle Rewards, further expanding and strengthening the program and 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.

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