Enters Agreement with Ad Hoc Group of Lenders as the “Stalking Horse” Bidder to Acquire Company
Files Voluntary Chapter 11 Petitions to Facilitate Sale Process
Receives Commitment of $22 Million in New Financing from Ad Hoc Lender Group
EDEN PRAIRIE, Minn., Nov. 8, 2023 /PRNewswire/ — Anagram International (“Anagram” or the “Company”), the world’s leading foil balloon manufacturer, has moved to strengthen its financial position and capitalize on growth opportunities as it continues to provide consumers with fun and inspiring foil balloon creations.
Today, Anagram announced that it is pursuing a sale of the Company and has entered into an agreement with a group of its lenders as the “Stalking Horse” bidder to acquire its assets, subject to higher or otherwise better offers and court approval. As part of this agreement, the “Stalking Horse” bidder has committed to hire all Anagram employees and assume all pre- and post-petition trade payables. To facilitate an orderly sale process, the Company has filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”), and the sale will be conducted through a court-supervised process under Section 363 of the U.S. Bankruptcy Code, providing potential buyers the opportunity to submit offers.
The Company has received a commitment of $22 million in debtor-in-possession financing (“DIP”) from the group of existing secured lenders. Following court approval, this new financing, combined with cash on hand and positive cash flow being generated from the Company’s ongoing operations, will adequately support the business and satisfy obligations during the court-supervised process.
In April 2023, Anagram appointed Adrian Frankum, Senior Managing Director at Ankura Consulting, as Chief Restructuring Officer. Mr. Frankum brings over 24 years of experience in restructuring advisory and a breadth of business leadership expertise. Anagram’s management team, including Mr. Frankum, will continue to lead the process and manage the business.
“Having carefully reviewed all available strategic options, we believe that a sale of the business will provide Anagram with the best path forward to accelerate global growth and strengthen our market leadership,” said Mr. Frankum. “As we move through this process, we remain focused on delivering innovative products to our customers worldwide with minimal disruption, and we are grateful for their trust in us. We thank all our Anagram employees for their ongoing hard work and excellence, and we also extend our gratitude to our customers and trade partners, suppliers, and vendors for their continued support.”
In accordance with the sale process under Section 363 of the Bankruptcy Code, the Company will solicit competing bids from interested parties. The bidding process is designed to achieve the highest and best value for the Company’s assets. Anagram seeks to complete the sale process before year-end, with any sale subject to approval by the Court.
The Company has filed customary motions seeking court approval to continue its operations during the court-supervised process, including the continued payment of employee wages and benefits without interruption. The Company expects to receive court approval for these requests. Anagram has also filed customary motions seeking court approval to continue its customer programs without interruption and expects to continue meeting commitments to customers in the ordinary course and to meet all post-petition obligations to vendors.
Anagram is a subsidiary of Party City Holdco Inc (“PCHI”), which recently received court approval for its plan of reorganization and emerged from Chapter 11 following its restructuring. Anagram was not part of those proceedings and continues to support PCHI as a valued retail partner.
Court filings and additional information related to the proceedings are available on a website administered by the Company’s claims agent, KCC, LLC, at www.kccllc.net/Anagram, by calling toll-free at (866) 967-1781 (or (310) 751-2681 for calls originating outside of the U.S.), or by sending an email to [email protected].
Anagram is represented by Simpson Thacher & Bartlett LLP as counsel, Ankura Consulting as financial advisor, and RW Baird as investment banker. The Ad Hoc Lender Group is represented by Milbank LLP as counsel and Houlihan Lokey as investment banker.
About Anagram
Founded in 1977, Anagram International leads the world in innovating and manufacturing foil balloons. Headquartered in Eden Prairie, Minnesota, our dedicated team includes Research & Development, Creative, Product Development, Engineering, Manufacturing, Quality Control, Distribution, Marketing, Sales and Customer Service. With a strong commitment to innovation, Anagram proudly celebrates countless first-to-market product solutions, including AirWalkers®, AirLoonz®, and Xtra-Life® Technology. We offer the largest portfolio of licenses and license character products combined with a trend-forward non-license portfolio for everyday occasions and seasonal celebrations. We proudly offer many product formats only sold via the Anagram brand. Through a strong network of distribution partners, Anagram balloons are sold in over 140 countries. Sharing in small moments of joy and grand celebrations for over 40 years, Anagram’s mission is to create joy, on purpose, every single day. Visit www.anagramballoons.com for more information.
Anagram Media Contacts:
Adrian Frankum: [email protected]
Greg Lewis: [email protected]
SOURCE Anagram International
