The deal, which is subject to approval by iParty shareholders, is expected to close in the second quarter of 2013 and values the business at $0.45 per share.
Party City CEO Gerald Rittenberg said, “By joining forces, we enhance our leadership position and accelerate our growth throughout New England, a densely populated region where we currently do not have a market presence.
“We have maintained a relationship with iParty for many years and have long admired their strong management team and well-recognized brand.
“We look forward to working together to expand our combined geographic footprint and brand presence on a national scale.”
Since its inception in 1974 Thomas H. Lee has raised around $20bn of equity capital and invested in 100 companies, having also completed 200 add-on acquisitions. The firm took control of Party City through a $2.69bn recapitalisation in June last year.
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