GCA Altium advises Amscan International on Endless-backed buy-out from Party City
Party City is the leading party goods and Halloween-specialty retailer by revenue in North America and is one of the world’s largest vertically integrated suppliers of decorated party goods. Party City combines state-of-the-art manufacturing and sourcing operations with its sophisticated wholesale operations, a multi-channel retailing strategy and e-commerce retail operations. The company generates annual revenues of US$2 billion and is listed on the New York Stock Exchange with a market capitalisation of US$590 million.
Amscan, a subsidiary of PCHI and headquartered in Milton Keynes in the United Kingdom, is a market-leading international designer, manufacturer, distributor and omnichannel retailer of party products and supplies, with operations in the UK, Ireland, Germany, Australia, New Zealand and Asia. The management buy-out has been led by Amscan’s existing management team of CEO Gary Panons and COO / CFO Joe Hennigan with funding from UK private equity house Endless.
The total transaction value for the deal amounts to US$59 million. As part of the agreement, Party City and Amscan will also form a joint venture partnership for Party City’s costume sourcing and manufacturing business in Asia, currently part of Amscan Asia. Party City will retain its other existing sourcing operations.
Gary Panons, CEO of Amscan International, said: “We spent a lot of time and effort choosing the right advisers. We are fortunate that we made the right choice. From the off GCA Altium guided both us and the process perfectly.”
Sam Fuller and Oliver Vaughan, Managing Directors at GCA Altium, added: “Endless have a strong track record with corporate carve-outs and are experienced investors in wholesale and distribution businesses. We are convinced that with Endless on board, Amscan will be able to accelerate its organic growth, expand into new territories and make transformational acquisitions.”
The transaction is expected to close by the end of calendar year 2020, subject to customary approvals and closing conditions.