Chinese company attempted to buy Party City earlier this year
(Reuters) U.S. retailer Party City Holdco Inc. rejected an acquisition proposal earlier this year from Meisheng Cultural & Creative Corp (002699.SZ), a Chinese manufacturer of toys and apparel, people familiar with the matter said Aug. 3.
Meisheng Cultural’s unsuccessful acquisition attempt illustrates how some Chinese companies see opportunities in marrying their low-cost manufacturing base with U.S. retailers looking for an edge in their fierce competition over prices with e-commerce sites such as Amazon.com (AMZN.O).
Chinese companies are exploring U.S. acquisitions despite trade tensions between the two countries. On Friday, China unveiled plans for tariffs on $60 billion worth of U.S. goods in response to the United States proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.
Party City is not exploring a sale and is no longer in talks with Meisheng Cultural after deeming its unsolicited proposal to be inadequate, the sources said, requesting anonymity to discuss the confidential matter.
“Per company policy, Party City does not comment on rumors or speculation,” a spokesperson for the company said by email. “However, we want to make it clear that there are no active discussions in regard to an acquisition or transaction of any kind. We are focused on creating value for our shareholders and the best experience for our customers ahead of the Halloween season.”
Meisheng Cultural did not respond to a request for comment.