Party City enters new market via acquisition
Party City is expanding its footprint.
Party City Holdco Inc. has entered into an agreement to acquire the MG Novelty Corp. for approximately $5.5 million. The purchase includes seven stores under the name “Party Galaxy” in the Oklahoma City metro area. MG Novelty Corporation reported total annual sales of approximately $9.0 million in 2016.
“This immediately accretive acquisition provides us the opportunity to enter the new market of Oklahoma City as we continue to grow our retail square footage and expand our customer base," said James M. Harrison, CEO, Party City. "With customers’ continued preference to shop this category in store, the acquisition of Party Galaxy is a very attractive use of capital and allows us to leverage the Party City brand name, assortment, store experience as well as vertical model for the benefit of customers and shareholders.”
Party City Holdco designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The company’s retail operations include over 900 specialty retail party supply stores (including approximately 150 franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.
Party City Holdco Inc. has entered into an agreement to acquire the MG Novelty Corp. for approximately $5.5 million. The purchase includes seven stores under the name “Party Galaxy” in the Oklahoma City metro area. MG Novelty Corporation reported total annual sales of approximately $9.0 million in 2016.
“This immediately accretive acquisition provides us the opportunity to enter the new market of Oklahoma City as we continue to grow our retail square footage and expand our customer base," said James M. Harrison, CEO, Party City. "With customers’ continued preference to shop this category in store, the acquisition of Party Galaxy is a very attractive use of capital and allows us to leverage the Party City brand name, assortment, store experience as well as vertical model for the benefit of customers and shareholders.”
Party City Holdco designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The company’s retail operations include over 900 specialty retail party supply stores (including approximately 150 franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.