Capstone Partners’ Special Situations Investment Banking (SSIB) group is pleased to announce the sale of Granmark S.A. de C.V. (Granmark), a wholly-owned, Mexican subsidiary of Party City Holdings, Inc. (Party City), to Impulsora Euro S.A. de C.V. (Impulsora or the Buyer).
Founded in 1985, Granmark is a leading designer, manufacturer, and distributor of party supplies, gift wrap, stationery, and packaging products based in Monterrey, Mexico. Party City acquired Granmark in 2017 to support expansion of its retail store base in Mexico and to expand distribution reach into Latin America.
As part of management’s performance improvement initiatives, Party City determined the ownership of Granmark did not align with the go-forward operating model and decided to divest the subsidiary.
Party City engaged Capstone Partner’s SSIB group to assist with the potential sale of Granmark. Capstone incorporated market feedback from acquirers in the U.S. and determined the optimal strategy was to target strategic and financial acquirers in Mexico.
Impulsora Euro, a Monterrey-based importer and manufacturer of party supplies, novelty items, and toys in Mexico and the U.S., had a historical relationship with Granmark and became interested in the acquisition, ultimately submitting a LOI.
Capstone overcame significant challenges to complete the cross-border, divestiture transaction, not the least of which was Party City’s bankruptcy process which required creditor consent and the approval of the United States Bankruptcy Court of the Southern District of Texas to proceed with the sale.
This transaction clearly would not have taken place without the efforts of Capstone, who expended significant efforts to manage the local management team, the buyers, the lawyers, and a multitude of other potential barriers to progress.
“This was a very challenging, complex transaction process due to industry headwinds and its cross-border nature combined with Party City’s bankruptcy filing during the sale process. Capstone, working collaboratively with the Party City team, was able to successfully navigate all of these challenges to achieve an optimal outcome for our client.” Jamie Lisac, Group Head and Managing Director, Capstone Special Situations Investment Banking group.
View all recent Capstone Special Situations transactions here.