Advantage Solutions Sells Foodservice Businesses

Advantage Solutions, a leading provider of sales and marketing services to consumer goods manufacturers and retailers, has made a strategic decision to divest its collection of foodservice businesses. The company aims to sharpen its focus on core retail operations and bolster its financial position.

Under the agreement, the foodservice businesses will be integrated into KeyImpact Sales & Systems, joining forces to create a stronger entity in the market. Advantage Solutions anticipates receiving approximately $100 million in proceeds from the sale, a combination of cash and a 7.5% equity stake in the combined venture.

To further solidify its financial standing, Advantage Solutions plans to allocate the majority of the sale proceeds towards debt repayment, demonstrating its commitment to long-term sustainability and growth.

Additionally, Advantage Solutions has taken steps to optimize its operational efficiency. Through two separate agreements with reputable technology companies, the company aims to streamline and enhance various business processes and administrative functions.

In collaboration with Genpact, Advantage Solutions will establish an innovative go-to-market model, utilizing the strengths of both entities. Meanwhile, a partnership with Tata Consultancy Services will enable Advantage Solutions to modernize its information technology services, keeping pace with the rapidly evolving digital landscape.

This strategic move is indicative of Advantage Solutions' dedication to cultivating a robust retail ecosystem while leveraging cutting-edge technology to deliver exceptional value to its clients.