Canadian Tire Corporation to Acquire Party City’s Canadian Business

Acquisition Immediately Accretive Transaction Terms & Financing Purchase Price $174.4M, inclusive of ~$40M in inventory, for Party City's brand, store network, employee base, leaseholds and fixed assets in Canada Accretion Immediately accretive to EPS, EBITDA and ROIC (before synergies) Retail sales expected to double to $280 million by 2021 Expected continued strong EBITDA growth to 2021 yielding an implied EBITDA multiple in the mid to low single digits Financial Flexibility CTC has ample financial flexibility to fund the acquisition Expected Close & Approvals Expected close in Q3 2019 Subject to competition bureau approval and customary closing conditions 9

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