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  • August 2017 (Revised January 2020)
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Berkshire Partners: Party City

By: Victoria Ivashina and Jeffrey Boyar
  • Format:Print
  • | Language:English
  • | Pages:12
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Abstract

In 2005, Berkshire Partners, a Boston-based private equity firm specializing in growth equity, was one year into their ownership of Amscan, the market leader of designed, manufactured, and distributed decorated party goods and accessories. However, Amscan's primary customer, retail store Party City, was making aggressive moves to backwards integrate and cut into Amscan's profit pool. Even if Party City failed at its attempt, it could cause significant damage to the business and subsequently hurt Amscan’s top line. The Berkshire team needed to figure out a path forward. Should they try to invest in or buy Party City to thwart efforts that would potentially erode both businesses? If they did, should Party City remain a standalone company, or should it be merged with Amscan? Would Party City even come to the negotiating table? These questions, plus additional complications with investments from overlapping funds, left the Berkshire team in a difficult situation.

Keywords

Turnaround; Fundraising; Cross-fund Investment; Private Equity; Vertical Integration; Governance; Valuation; Manufacturing Industry; Retail Industry; United States

Citation

Ivashina, Victoria, and Jeffrey Boyar. "Berkshire Partners: Party City." Harvard Business School Case 218-028, August 2017. (Revised January 2020.)
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About The Author

Victoria Ivashina

Finance
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Related Work

    • June 2018
    • Faculty Research

    Berkshire Partners: Party City

    By: Victoria Ivashina and Jeffrey Boyar
    • August 2017 (Revised January 2020)
    • Faculty Research

    Berkshire Partners: Party City

    By: Victoria Ivashina and Jeffrey Boyar
Related Work
  • Berkshire Partners: Party City By: Victoria Ivashina and Jeffrey Boyar
  • Berkshire Partners: Party City By: Victoria Ivashina and Jeffrey Boyar
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