Party City pays $35 million for rival iParty

IParty has 54 stores in addition to its e-commerce site.

Party supplies retailer Party City Corp. will pay approximately $35 million in a stock deal for iParty Corp., a smaller rival with an e-commerce site and 54 stores in New England and Florida.

The fate of iParty’s site, stores and its branding has yet to be determined, says a person familiar with the deal. The transaction is expected to close during the second quarter, Party City says.

Party City itself was bought in by private equity firm Thomas H. Lee Partners L.P. for $2.69 billion in 2012. Party City is No. 302 in the Internet Retailer Top 500 guide.

Party City operates more than 750 stores in Canada, Puerto Rico and the United States in addition to an e-commerce site.

IParty’s stock was unchanged in early trading today at 43 cents per share.