Party City Announces the Acquisition of Festival SA

14 Mar 2016, 00:00 AM EDT

ELMSFORD, N.Y.–(BUSINESS WIRE)–Party City Holdco Inc. (the “Company” or “Party City”) (NYSE:PRTY), the
leading vertically integrated party goods company in North America,
announces that it has acquired Festival SA (“Festival”), a manufacturer
of costumes and accessories.

Under the agreement the Company purchased the stock of Festival, which
operates a 107,000 square foot manufacturing facility located in
Madagascar, for a cash purchase price of approximately $5 million. In
conjunction with the acquisition, the Company has entered into a supply
agreement with Cesar, the previous owner, who will continue to purchase
an agreed upon minimum level of product manufactured by Festival.

Jim Harrison, CEO of Party City Holdco Inc. said, “The Festival
transaction is an important step in the Company’s long history of
successful bolt-on acquisitions which have served to deepen our vertical
business model, a key component of our growth strategy. This acquisition
will allow us to source up to 15% of our costume and accessory
requirements over the next several years and capture the full
manufacturing-to-retail margin on these products.”

About Party City

Party City Holdco Inc. (the “Company” or “Party City Holdco”) is the
leading party goods company by revenue in North America and, we believe,
the largest vertically integrated supplier of decorated party goods
globally by revenue. The Company is a popular one-stop shopping
destination for party supplies, balloons, and costumes. In addition to
being a great retail brand, the Company is a global, world-class
organization that combines state-of-the-art manufacturing and sourcing
operations, and sophisticated wholesale operations complemented by a
multi-channel retailing strategy and e-commerce retail operations. The
Company is the leading player in its category, vertically integrated and
unique in its breadth and depth. Party City Holdco designs,
manufactures, sources and distributes party goods, including paper and
plastic tableware, metallic and latex balloons, Halloween and other
costumes, accessories, novelties, gifts and stationery throughout the
world. The Company’s retail operations include approximately 900
specialty retail party supply stores (including approximately 180
franchise stores) throughout North America operating under the names
Party City and Halloween City, and e-commerce websites, principally
through the domain name PartyCity.com.