ADV - Advantage Solutions Further Simplifies Portfolio by Selling Its Collection of Foodservice Businesses to Prospect Hill Growth Partners to Form Acxion Foodservice | Benzinga
IRVINE, Calif., Jan. 31, 2024 (GLOBE NEWSWIRE) -- 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 ...