Party City Acquires MG Novelty Corp. for $5.5M
Party City announced that it has entered into an agreement to acquire the MG Novelty Corporation for approximately $5.5 million, which includes seven retail stores under the name “Party Galaxy” in the Oklahoma City metro area. MG Novelty Corporation reported total annual sales of approximately $9.0 million in 2016.
“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 M. Harrison, Party City’s CEO, in a company press release. "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.”