Party City purchases Granmark to increase presence in Latin America
Party City Holdco Inc. (NYSE:PRTY), the leading vertically integrated party goods company in North America, announced March 7 that it has acquired a majority interest in Granmark, S.A. de C.V., a leading privately held manufacturer and distributor of party supplies, gift wrap and stationery items based in Monterrey, Mexico.
Founded in 1985, Granmark's portfolio of licenses includes Disney, Dreamworks, Mattel, Hasbro, Nickelodeon, Televisa, Tycoon, Warner Bros., Marvel and Lucas. Under the terms of the agreement, Party City purchased an 85% interest in Granmark valued at approximately $22 million, with an agreement to purchase the remaining interest over the next three to five years.
Jim Harrison, CEO of Party City, said, “The acquisition of Granmark represents continued execution of our growth strategy, and substantially strengthens our presence in Latin America with a manufacturer that has a trusted name, a loyal customer base and broad retail and licensing partnerships. We are extremely pleased to welcome Granmark and its almost 800 employees to the Party City family as we build our retail store base in Mexico and expand our distribution reach into Latin America.”
The acquisition is the second announced by Party City in less than week, as the purchase of Australian-based party supply and balloon distributor Balloon Agencies was announced on March 3.
As part of a strategy to expand its global retail presence, Party City, along with its strategic franchise partner Grupo Oprimax, opened its first three stores in Mexico during 2016. As previously announced, plans call for the company and Grupo Oprimax to open a total of 80 Party City stores in Mexico over the next 10 years.
Harrison continued, “While this acquisition gives us sourcing directly in the market to support a growing franchise base there, it also gives us an opportunity to broaden Granmark's product line and export our U.S.-manufactured party supplies across the region.”
Harrison concluded, “Latin America’s festive culture represents a prime market for party supplies. Our alliance with Grupo Oprimax allows us to be the first to bring the party superstore concept to Mexico. Now, with the acquisition of Granmark, we have local manufacturing and wholesale capabilities that will support this store base.”