Boston, Massachusetts and Rockaway, New Jersey, June 5, 2012 — Thomas H. Lee Partners, L.P. ("THL"), a leading private equity firm, announced today that it has signed a definitive agreement under which THL will acquire a majority stake in Party City Holdings Inc. ("Party City"), America's premier party supplies retailer, in a recapitalization transaction valued at $2.69 billion.  Advent International Corp. ("Advent"), Berkshire Partners LLC ("Berkshire Partners"), Weston Presidio ("Weston Presidio") and company management, which currently own Party City, will continue to hold significant minority stakes following the recapitalization.

"Party City leads the $10 billion retail party goods industry in terms of product selection and retail network. 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," said Todd M. Abbrecht, a managing director at THL. 

"From its founding in 1947, the company has evolved to become a world-class company with widely recognized brands, a broad product offering, a strong global sourcing model and a category-defining retail concept," said Gerald C. Rittenberg, Party City's Chief Executive Officer.  "The management team and I look forward to welcoming THL as an investor and working with the expanded shareholder group to position us for future growth across each of our channels.  We are appreciative of the terrific partnership and guidance of our existing investors in the development and execution of our strategic plan." 

Party City's decorated party supply products are available in over 40,000 retail outlets worldwide, as well as in its own retail network of approximately 825 permanent party superstores and 400 temporary Halloween locations.  The company also sells direct to customers through its e-commerce website, PartyCity.com. 

"Party City is by far the leader in the wholesale and retail party goods industry," said Steven J. Collins, a managing director at Advent International.  "With the additional leadership and support of THL, we believe the company is well-positioned to continue its successful development." 

"We are proud of Party City's achievements since our original investment in 2004 and fortunate to have a long-standing, talented management team," said Robert J. Small, a managing director at Berkshire Partners.  "We believe the company is in an even better position today and are excited to remain partners with Gerry and his team for this next chapter of growth." 

Kevin M. Hayes, a partner at Weston Presidio, said, "We believe Party City has significant opportunities to enhance its leadership position in the party goods industry. We look forward to working with the THL team and our existing partners to help Party City pursue and achieve its growth objectives." 

BofA Merrill Lynch and Moelis & Company acted as financial advisors and Weil, Gotshal & Manges LLP acted as legal advisor to THL.  Goldman Sachs, & Co. and Deutsche Bank Securities Inc. acted as financial advisors to Party City.  Ropes & Gray LLP acted as legal advisor to Advent International, Berkshire Partners, Weston Presidio and Party City. 

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Source: Thomas H. Lee Partners via PR Newswire
Title: Thomas H. Lee Partners Acquires Majority Stake in Party City
Date Published: June 5, 2012
Date Accessed: August 7, 2013