Party City (NYSE: PRTY), which is the largest party goods retailer in North America, announced an agreement to acquire a master franchise group on March the 16th. The group represents 18 franchise stores that are spread across South and North Carolina. The transaction is expected to total 31 million dollars, which equates to a multiple of EBITDA of roughly 4.6 times. During 2016, the franchise operated reported sales of around 44 million dollars. Before the acquisition, Party City’s holdings included 164 franchise stores with 765 company held stores. Party City has been trading on the New York Stock Exchange, since IPOing in April of 2015.

The PRTY stock debuted at $20.50, after pricing in at $17 per share. On Friday, the stock drifted to $13.80 during after hours trading. Party City last reported earnings on March the 9th of 2017. While the company’s EPS beat by .02, their revenue missed by over $11 million. Also, on March the 3rd, Party City announced the acquisition of the Australian wholesaler and distributor of balloons and party supplies, Balloon Agencies. The acquisition, which is valued at 1.9 million dollars, will give Party City the ability to expand throughout Australia.

To learn more about Party City’s acquisitions in the Carolina, be sure to check out the company’s latest press release here.

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