US party and costume retailer Party City has acquired MG Novelty Corporation, which includes seven retail stores under the name ‘Party Galaxy’ in the Oklahoma City area.
The leading retailer and party goods company bought the MG Novelty business – which reported total annual sales of approximately $9million in 2016 – for approximately $5.5million.
MG Novelty was founded in 1937 as a decoration and carnival supply company and changed its name to Party Galaxy in 2001 before eventually expanding to 11 locations. It also had a five-year supply agreement with Party City’s parent company Amscan that gave it favourable pricing and trade terms, although this expired in 2012.
“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 Harrison, Party City’s chief executive officer.
“With customers’ continued preference to shop this category instore, 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,” he continued.
Party City’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, as well as e-commerce websites such as PartyCity.com.
