Capstone Partners (IMAP USA) is pleased to announce that its Special Situations Investment Banking group advised on 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.