In a $174.4 million transaction, Canadian Tire has acquired Party City’s Canadian business, which consists of 65 stores in seven provinces. The deal includes around $40 million in inventory.
Party City is a leading source of party supplies and has expertise in seasonal and micro-seasonal celebrations. Its product assortment will now be sold through Canadian Tire’s 500 retail stores as well as online.
Canadian Tire says it will expand Party City's standalone store network in Canada as well as building store-in-store pop-ups and "in-line" aisles across its network. The company believes the acquisition will confirm it as “Canada’s Fun Store” and bring onboard a strong millennial and family customer market segment.
Canadian Tire also expects to double Party City Canada’s retail sales to $280 million by 2021.
The acquisition is expected to close in Q3 2019, subject to closing conditions.