Canadian Tire has officially entered into a partnership agreement to purchase Party City’s Canadian subsidiary for $174.4 million cash.
According to the national retail giant, this is a move that would strengthen the brand’s connection to its millennial customers and Canadian families.
The acquisition includes 65 Party City stores across Canada and $40 million in inventory.
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The Toronto-based company says the deal would strengthen its marketplace by becoming the “#1 party supply destination,” and a one-stop-shop for all consumers’ party and celebration needs.
“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,” said Allan MacDonald, EVP of retail at the Canadian Tire Corporation.
“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.”
Canadian Tire says it estimates that it will be able to double Party City’s annual sales in Canada to $280 million by 2021.
According to the Canadian retailer, the acquisition is expected to close in Q3 2019 and is subject to conditions.