A Twin Cities foil balloon manufacturer that filed for Chapter 11 bankruptcy in November has sold its assets to a group of investors, making it independently owned again after years of being held by arguably its biggest customer, Party City.
Eden Prairie balloon manufacturer Anagram emerges from bankruptcy as independent company
Anagram, which supplies foil balloons in more than 140 countries, was a wholly owned subsidiary of New Jersey-based Party City.
January 5, 2024 at 9:27PM
Eden Prairie-based Anagram International announced this week it sold its assets to Celebration Bidco LLC, an investor group comprised of the company's existing lenders. The cash requirement to purchase Anagram's assets, according to court filings, was $180 million.
Celebration Bidco, made up of investors and funds, previously agreed to acquire Anagram's assets, including roughly 350 employees, as the stalking horse bidder. The investment group also made a commitment to provide $22 million to Anagram to support the business during the bankruptcy process. Those funds helped stabilize the company and will support its future growth, company leaders said.
"I am grateful for the dedication and commitment of all of our employees as we navigated this process and for the continued support of our vendors and customers," said Jim Plutt, president of Anagram International, in a statement. "As we embark on this fresh start with a stronger balance sheet and new capital, we are focused on further investing in our team and our industry-leading innovation in the years to come and delivering even greater value to our stakeholders."
Anagram was a wholly owned subsidiary of New Jersey-based Party City, which itself filed for Chapter 11 bankruptcy in January 2023. Anagram, founded in 1977, was purchased in 1998 by Amscan Holdings Inc. — the previous name of Party City Holdings.
In October, retailer Party City announced the completion of its restructuring process that led to the company eliminating nearly $1 billion in debt, though Anagram was not part of that or the Chapter 11 proceedings.
Anagram and Party City anticipate maintaining a commercial arrangement going forward, per the company's press release.
Anagram's sales had been declining in recent years, according to Party City financial documents, mostly because the company was experiencing "continued tightening of helium supply" at certain retailers. Anagram, which supplies its balloons in more than 140 countries, had revenue of $224.3 million and $157.1 million in 2021 and 2020, respectively.
Passenger volume at Rochester International Airport is down nearly 50% since the start of the pandemic as travelers migrate to MSP for cheaper flights without layovers.
