Toronto, October 30, 2008 - VenGrowth Asset Management Inc. and its affiliates ("VenGrowth") today announced a $9.5 million investment in Party Packagers Inc. ("Party Packagers"). Completed by the VenGrowth MezzGrowth Group, the financing deal is comprised of both debt and equity.
The VenGrowth Traditional Industries Fund Inc., The VenGrowth III Investment Fund Inc. and VG Mezzanine I Limited Partnership have provided financing to help Party Packagers grow its business and expand its well-known Ontario brand across Canada.
Founded in 1976, Party Packagers is a value retailer specializing in party supplies, loot bags and toys with 20 locations across Ontario. As Canada’s largest chain of party stores, it offers a very broad selection of competitively priced party-themed products for every occasion. As well, it is one of the country’s top locations for Halloween costumes.
Bill Goodwin has been appointed President of Party Packagers. With over 20 years of senior retail industry experience, he was most recently President of Payless ShoeSource Canada Inc.
“After conducting an extensive search, VenGrowth and I believe we have chosen an excellent leader to guide Party Packagers as it seeks the continued expansion and growth of our retail concept,” said Howard Mandel, founder of Party Packagers.
“Working with Howard, his team and VenGrowth has been a pleasure, and I look forward to building on the success that Party Packagers has already realized,” said Bill Goodwin.
"Party Packagers is a uniquely-positioned business, and we believe that given the demographics and trends towards more in-home entertaining, the company is well-positioned for continued success and growth,” said John Neate, Director at VenGrowth.
About VenGrowth MezzGrowth Group
VenGrowth MezzGrowth Group specializes in financing solutions for mid-market Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. The Group primarily invests using debt instruments with the objective of generating interest and dividend income. In addition, participating VenGrowth Funds will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. Formed in 2003, the Group had invested over $140 million into 19 companies as at September 2008. The Group is led by Graham McBride, a highly regarded mezzanine financing expert with over 20 years of experience.
Media Inquiries:
Angus Fisher
Director, Communications & Media
VenGrowth Asset Management Inc.
416.628.9255
afisher@vengrowth.com
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the Funds before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Units of the Funds are sold through registered dealers.
