Party product supplier Amscan International says the takeover of the Swedish company will enable Nordic expansion.
The Milton Keynes-based designer, manufacturer, distributor, wholesaler and retailer of party products acquired the business for an undisclosed sum and now has a turnover in excess of £300m.
The founders and owners of Party King, Joel Svensson and Jeff Jansson, will continue to run the business from its warehouse and office facility in Gävle, Sweden.
Party King has revenues of £30m, which are expected to grow by around 20% this year, and has also increased sales by more than 50% over the last three years. The business operates four websites across Sweden, Denmark, Norway and Finland and is the market leader in the Nordics.
The deal also sees Amscan International increase its eCommerce revenues overall, with online sales now accounting for more than £100m of the company’s £300m turnover.
Party King was established in 2009 and employs 80 people, all of whom have been transferred to Amscan International. Joel Svensson originally founded Party King as a gift to his mother, Eva, as she was unemployed and needed a job.
Commenting on the deal, Amscan International chief executive Joe Hennigan said: “Party King is a very strong and well invested brand in the Nordics. It is a market where we have minimal presence but have long had hopes of expanding further within. It is a brand that increases our online revenues to more than £100m and could be leveraged across our other commercial markets.”
He added: “Continuing to accelerate our direct-to-consumer revenues and building our brand portfolio are two key pillars of our strategic plan, so Party King is an ideal acquisition in supporting those goals. Joel and Jeff have built an exciting, dynamic and professionally run business and we will be working with them to further evolve the Party King brand, product and service offer within the Nordics and beyond.”
In addition to Milton Keynes, Amscan International has offices in Ireland, Germany, Australasia and Asia. The company employs around 2,500 people worldwide and its retail brands include Party Delights, the UK’s largest online party store, Ginger Ray and several other brands across 15 countries. In January 2021, the company underwent a management buy-out supported by Leeds-headquartered private equity firm Endless.
Amscan International managing director of European retail, Claire Grasby, added: “We have long admired and respected the growth of Party King and are excited by the opportunity to further bolster our eCommerce capabilities. I’m looking forward to further developing the Party King brand, and see vast opportunities for our eCommerce team to support and learn from the Party King team.”
Party King chief executive Joel Svensson said: “This is a great deal for both businesses which gives Party King the opportunity to supercharge its growth. All of us are very excited and energised by the thought of what the future holds. We can’t wait to start making it a reality alongside Joe, Claire, and the team at Amscan International.”