Canadian Tire Corporation (CTC) has announced that it has entered into an agreement to purchase Party City’s Canadian business for $174.4 million (including ~$40 million in inventory). Party City is a shopping destination for party supplies and an expert in seasonal and micro-seasonal celebrations, with 65 Canadian retail stores in seven provinces.
Here are the four pieces of the strategic rationale for this unique acquisition:
It strengthens CTC’s marketplace.
CTC will immediately become a major....