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ROCKAWAY, NJ-Party City Corp., retailer of party goods, has been acquired by AAH Holdings Corp. under a merger agreement that gave Party City shareholders $17.50 per share of common stock.

AAH Holdings, owned by Berkshire Partners LLC and Weston Presidio, said it paid approximately $364 million to shareholders as part of the acquisition. A majority of Party City shareholders approved that transaction at a special meeting on Dec. 7.

The merger agreement, which was completed late last week, ended the sale of the company’s common stock, which stopped trading on Nasdaq at the close of business on Dec. 23. The stock has since been delisted.

“The acquisition of Party City represents an exciting opportunity to capitalize on the growth in the party superstore channel,” said Robert J. Small, chairman of AAH Holdings said in a statement announcing the acquisition’s completion.

Ralph Dillon, non-executive chairman of the board of Party City, said the transaction generated “significant value for Party City shareholders while creating a new entity that is well-positioned to capture the opportunities of the party supply industry, for the benefit of our associates, franchisees and customers.”

Neither representatives from AAH holdings nor Party City returned calls from GSR seeking comment.

The Rockaway, NJ-based party chain has 248 company-owned stores and 254 franchise locations in the United States with total revenues for the 12-months ending Oct. 1 of approximately $514 million and total chain-wide net sales of approximately $980 million.

The transaction was arranged with the assistance of Goldman Sachs, which acted as financial adviser to AAH Holdings, and Ropes & Gray LLP, which served as legal adviser to the buyer. Party City was assisted by financial adviser Credit Suisse First Boston LLC and legal adviser Latham & Watkins LLP.

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