Party City pays $5.5M for Okla. party store chain

Party City Holdco Inc. plans to buy MG Novelty Corp. in a $5.5 million deal.

The Rockaway Township-based party goods company’s purchase includes seven retail stores under the name “Party Galaxy” in the Oklahoma City metro area.

MG Novelty Corp. reported about $9 million in sales last year.

“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 CEO James M. Harrison. “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.”