Party City Holdings Inc. will acquire IParty Corp. (NYSE: IPT) in a deal valued at $35 million.
Party City will pay $29 million for IParty’s stock and assume $6 million in debt. The price works out to $0.45 per share. On Feb. 28 before the deal was announced, IParty’s stock opened at $0.15.
IParty, headquartered in Dedham, Mass., has 54 party stores in New England and Florida, as well as a website. The company sells costumes, balloons and other party supplies.
Rockaway, N.J.-based Party City has more than 750 company-owned and franchise locations across the U.S. The company designs, manufactures and sells tableware, metallic balloons, gifts, stationary and Halloween costumes.
Private equity firm Thomas H. Lee Partners LP acquired a majority stake in Party City in June 2012 for $2.69 billion, after the company filed for an initial public offering.
Moelis & Co. LLC acted as Party City’s financial adviser, with a team of bankers that included Roger Hoit, Chris Kane and Aarti Kapoor. Ropes & Gray LLP handled legal matters for Party City on the deal. Raymond James & Associates acted as IParty’s financial adviser, while Posternak Blankstein & Lund LLP provided legal advice.