On October 1, 2019, Party City Holdco Inc. (NYSE: PRTY), the leading party goods company by revenue in North America, announced that it had completed the previously announced sale of its Canadian retail business to Canadian Tire Corporation, Limited (TSX: CTC). Pursuant to the agreement, Canadian Tire acquired the retail business and assets of Party City's Canadian subsidiary, including 65 retail store locations in Canada, in an all-cash transaction valued at approximately $174 million.
In connection with the sale, Party City and Canadian Tire have also agreed to a long-term wholesale supply agreement, with an initial term of 10 years. Under the terms of the supply agreement, Party City's wholesale business, Amscan Inc., will provide Canadian Tire with consumer products. Party City anticipates that the supply agreement will effectively double Amscan's average annual wholesale shipments into the Canadian marketplace during the term of the agreement.
Gowling WLG was counsel to Party City in this transaction and agreement with a team led by Stephen McKersie that included Faran Umar-Khitab, Parna Sabet-Stephenson, David Torchetti and Tiffany Lee Bianchi (corporate/M&A); Paul Carenza, Michael Bussmann and Mariam Al Shikarchy (tax); Ian Macdonald (competition); Rob MacDonald (IP); Andrew Bratt and Matthew McCarthy (employment); Mark McHughan (real estate); and Chris Oates (privacy); assisted by student-at-law Adam Sherman.
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