Benzinga | Dec 9, 2020 08:22AM EST

Party City Announces Definitive Agreement To Sell Certain International Operations To Endless LLP For $59M

Enters Agreement to Sell Certain International Operations to Endless LLP



Establishes Joint Venture for Costume Sourcing and Manufacturing Operations in Asia

ELMSFORD, N.Y., Dec. 09, 2020 (GLOBE NEWSWIRE) -- Party City Holdco Inc. ((the "Company" or "Party City", NYSE:PRTY) today announced that it has entered into a definitive agreement to sell a substantial portion of its international operations ("Amscan International") to Endless LLP, a U.K. based private equity investor ("Endless"), for a total transaction value of approximately US$59 million, including US$45 million of cash proceeds and approximately US$14 million of excess cash and other adjustments to be returned to the Company. The business being sold includes Party City's international wholesale, retail and e-commerce businesses in the U.K., Ireland, Germany, Australia, New Zealand and Asia, which operate under a number of trade names, including Amscan International, Party Delights, and Livario, as well as several website brands in Europe.

As part of the agreement, Party City and Amscan International 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.

"We believe this transaction represents another positive step in our transformation strategy," said Brad Weston, Chief Executive Officer of Party City. "The sale of these assets enables us to focus on our core North American retail and wholesale operations, where we see the greatest opportunities for profitable growth, while maintaining the benefits of our vertically integrated structure. We are excited about the progress we are making to reinforce our position as the leading party platform in North America."

Mr. Weston continued, "Endless has a strong track record of supporting international consumer-oriented businesses, and we believe they are the right partner to take Amscan International into the future. We believe that this transaction will be seamless for global customers and vendors and create new opportunities for our associates, who work so hard every day to help our customers continue to inspire celebrations, even in this challenging environment."

Matthew Jubb, Partner at Endless, said, "We are delighted to have reached an agreement to acquire Amscan International, which we believe is a hugely exciting opportunity for us. We look forward to backing the management team with their exciting vision for the future development of the business. We look forward to sharing more details following completion."

Additional Transaction Details

The business being sold will be led by Amscan International's existing management team of Gary Panons, CEO of Amscan International, and Joe Hennigan, CFO/COO of Amscan International.

The joint venture for the costume sourcing and manufacturing business will include Party City's costume product development, sampling and sourcing in Asia and its manufacturing in Madagascar. It will be governed by a Board of Directors consisting of members from both Party City and Amscan International.

Party City will continue to sell foil balloons and party products into the international territory through supply agreements with Amscan International. Coupled with the continuation of its other existing sourcing operations, Party City expects its supply chain to remain unchanged following the transaction.

The transaction is expected to close by the end of calendar year 2020, subject to customary approvals and closing conditions.

Party City intends to use the transaction proceeds and returned excess cash for general corporate purposes.

Kurzman Eisenberg Corbin & Lever, LLP is serving as Party City's legal counsel in the US, and Osborne Clarke is serving as legal counsel in the UK.