US-based retailer Party City has agreed to acquire Oklahoma-based party store MG Novelty for approximately $5.5m.
As per the terms of the deal, Party City will be acquiring seven retail stores under the name ‘Party Galaxy’ in the Oklahoma City metro area.
MG Novelty is reported to have registered total annual sales of nearly $9m last year.
Party City chief executive officer James Harrison said: “This immediately accretive acquisition provides us with the opportunity to enter the new market of Oklahoma City as we continue to grow our retail square footage and expand our customer base.
“With customers’ continued preference to shop this category in store, 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.”
Party City is reported to have been in the party business for more than 30 years and has been designing, manufacturing and distributing party goods such as paper and plastic tableware, metallic and latex balloons, costumes, accessories, novelties, gifts and stationery worldwide.
The company’s retail operations include more than 900 party supply stores in the US and Canada.