Advantage Solutions Inc. (NASDAQ: ADV), a leading provider of sales
and marketing services to consumer goods manufacturers and
retailers, today announced it has sold its collection of
foodservice businesses, most notably Waypoint, to Prospect Hill
Growth Partners, L.P.
As part of the sale, the foodservice businesses will be combined
with KeyImpact Sales & Systems Inc., with Advantage receiving
total proceeds of approximately $100 million, which is a
combination of mostly cash and an ongoing 7.5% stake in the
combined entity. The sale will streamline Advantage’s portfolio,
allowing the company to focus on its core retail businesses and
strengthen its balance sheet.
As a result of the transaction, which closed today, KeyImpact
will combine with Waypoint, Marlin Connections, Primeline, CSSI,
Ettros, Halverson Group and Coleman, Greear & Associates to
form one of North America’s leading foodservice solutions agencies,
Acxion Foodservice (www.acxion.com). In addition to its stake in
Acxion, Advantage will obtain a seat on its board of directors.
“Acxion is the perfect partner for our foodservice companies,
and the combination of the businesses will create a player with the
capabilities and breadth to offer industry-leading services. While
we continue to see growth potential in the foodservice category, we
believe that our clients are best served when we focus on our core
retail capabilities while partnering to compete in adjacent
segments,” said Advantage Solutions CEO Dave Peacock. “This deal
allows Advantage to further prioritize other growth efforts in a
more focused way. We are excited to partner with Acxion on an
ongoing basis, and we look forward to sharing in the company’s
success going forward.”
Advantage and Acxion will maintain a close relationship, helping
to ensure that their complementary services are available to common
clients between the two distinct brokerage channels.
Advantage Solutions plans to use the majority of the proceeds of
the deal to pay down debt, further strengthening its balance sheet
and allowing the company to strategically invest in its talent and
core businesses.
"Simplifying our business sharpens our focus on how we convert
shoppers into buyers for both our consumer packaged goods and
retailer customers,” Peacock said. “The strategic decisions we’re
making at Advantage are designed to improve how we serve our
clients and customers, while helping us improve cash flow and
position the company for profitable growth.”
This sale is Advantage’s latest business initiative focused on
its broader plan to accelerate growth. The company also announced
today it has entered into two separate agreements with third-party
technology companies to optimize and streamline a host of business
process and administrative functions.
Today’s moves follow a series of deals completed in late 2023,
including the sale of Atlas Technology Group to Crisp, which
occurred in October, and the company’s December announcement to
streamline and restructure its international businesses, most
notably reducing its stake in Advantage Smollan Limited, a joint
venture with the Smollan Group operating in Europe, from a majority
stake of under 60% to a minority position of 49.6% in exchange for
cash and other considerations.
About Advantage SolutionsAdvantage Solutions is
a leading provider of outsourced sales and marketing solutions
uniquely positioned at the intersection of brands and retailers.
Our data- and technology-driven services — which include
headquarter sales, retail merchandising, in-store and online
sampling, digital commerce, omnichannel marketing, retail media and
others — help brands and retailers of all sizes get products into
the hands of consumers, wherever they shop. As a trusted partner
and problem solver, we help our clients sell more while spending
less. Advantage has offices throughout North America and strategic
investments in select markets throughout Africa, Asia, Australia,
Latin America and Europe through which the company serves the
global needs of multinational, regional and local manufacturers.
For more information, please visit advantagesolutions.net.
Forward-Looking Statements
Certain statements in this press release may be considered
forward-looking statements within the meaning of the federal
securities laws, including statements regarding the expected future
performance of Advantage's business and projected financial
results. Forward-looking statements generally relate to future
events or Advantage’s future financial or operating performance, or
its future relationships with clients and business partners. These
forward-looking statements generally are identified by the words
“may”, “should”, “expect”, “intend”, “will”, “would”, “could”,
“estimate”, “anticipate”, “believe”, “predict”, “confident”,
“potential” or “continue”, or the negatives of these terms or
variations of them or similar terminology. Such forward-looking
statements are predictions, projections and other statements about
future events that are based on current expectations and
assumptions and, as a result, are subject to risks, uncertainties
and other factors which could cause actual results to differ
materially from those expressed or implied by such forward looking
statements.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by Advantage and its
management at the time of such statements, are inherently
uncertain. Factors that may cause actual results to differ
materially from current expectations include, but are not limited
to, any changes in the business relationships between Advantage and
its clients, business partners or other third parties, the ability
for Advantage to realize the anticipated benefits of the
transactions, the market-driven wage changes or changes to labor
laws or wage or job classification regulations, including minimum
wage; the COVID-19 pandemic and the measures taken in response
thereto; the availability, acceptance, administration and
effectiveness of any COVID-19 vaccine; Advantage’s ability to
continue to generate significant operating cash flow; client
procurement strategies and consolidation of Advantage’s clients’
industries creating pressure on the nature and pricing of its
services; consumer goods manufacturers and retailers reviewing and
changing their sales, retail, marketing and technology programs and
relationships; Advantage’s ability to successfully develop and
maintain relevant omni-channel services for our clients in an
evolving industry and to otherwise adapt to significant
technological change; Advantage’s ability to maintain proper and
effective internal control over financial reporting in the future;
potential and actual harms to Advantage’s business arising from the
Take 5 Matter; Advantage’s substantial indebtedness and our ability
to refinance at favorable rates; and other risks and uncertainties
set forth in the section titled “Risk Factors” in the Annual Report
on Form 10-K filed by the company with the Securities and Exchange
Commission (the “SEC”) on March 1, 2023, and in its other filings
made from time to time with the SEC. These filings identify and
address other important risks and uncertainties that could cause
actual events and results to differ materially from those contained
in the forward-looking statements. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and Advantage assumes
no obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Peter Frostpress@advantagesolutions.net
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