Party goods distributor and retailer Party City Holdings Inc., which has its corporate headquarters in Rockaway, today announced private equity firm Thomas H. Lee Partners L.P., in Boston, acquired a majority stake in the company for $2.7 billion.
THL was among the final bidders in the sale, including BC Partners Ltd. and a joint venture between Leonard Green & Partners L.P. and TPG Capital Management. Party City closed bidding in May — more than a year after its owners filed for an initial public offering.
Following the transaction, Berkshire Partners LLC and Weston Presidio — which bought Party City from Goldman Sachs & Co. in 2004 — will continue to hold minority stakes in the retailer with shareholder Advent International Corp. and the company’s management.
Party City’s revenues grew from $1.2 billion in 2007 to $1.8 billion in 2011 under the three firms’ control.
The company operates approximately 1,200 retail 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.
“Party City leads the $10 billion retail party goods industry in terms of product selection and retail network,” THL managing director Todd M. Abbrecht said in a statement. “We look forward to working … to maximize its scale and vertically integrated business model to continue to grow its business.”