New York -- The Boston-based private equity firm Thomas H. Lee Partners has agreed to acquire a majority stake in Party City Holdings Inc., Rockaway, N.J., in a deal valued at $2.69 billion.
“Party City leads the $10 billion retail party goods industry in terms of product selection and retail network," said Todd Abbrecht, a managing director at Thomas H. Lee Partners, in a statement. "We look forward to working closely with the team at Party City to maximize its scale and vertically integrated business model to continue to grow its business.”
Party City’s current owners Berkshire Partners and Weston Presidio, will hold minority stakes following the transaction, along with current management and investors Advent International.
Party City had revenues of $1.8 billion in 2011. The company operates approximately 1,200 stores in the United States and Canada, and distributes party supplies to more than 40,000 retail outlets worldwide, as well as through its e-commerce website.