Funds Team Up to Buy Amscan
Private-equity firms Berkshire Partners LLC and Weston Presidio plan to acquire party-goods maker Amscan Holdings Inc. for about $140 million plus $400 million in debt, according to people familiar with the matter.</br></br>Amscan, Elmsford, N.Y., makes party goods such as printed plates, napkins, and wedding and birthday gifts. It also is the world's largest maker of metallic party balloons. Last year, the company posted sales of about $400 million, up from $210 million in 1997.</br></br>A Goldman Sachs Group Inc. private-equity vehicle took the company private in 1997, paying $290 million for its then-publicly traded stock. Since then, GS Capital Partners II LP has invested $77 million in the business, in part to purchase other balloon-making companies.</br></br>The new buyers are expected to recapitalize the company, paying off $295 million in existing debt and, with borrowing arranged by Goldman Sachs, pay $245 million to the existing equity holders. An announcement could come as early as today, with the transaction closing midyear.</br></br>The deal is the latest in a growing number of transactions between private-equity firms. With low interest rates, the firms have been able to stay competitive in bidding wars with corporate buyers. Indeed, a person familiar with the Amscan transaction says the private-equity group beat out potential strategic buyers.