Advantage Solutions announces sale of foodservice businesses to Prospect Hill Growth Partners

In a strategic move to streamline its operations and reinforce its focus on core retail services, Advantage Solutions revealed on Wednesday its decision to sell its collection of foodservice businesses, including the prominent Waypoint, to Prospect Hill Growth Partners L.P. The transaction signifies a pivotal shift for the leading provider of sales and marketing services to consumer goods manufacturers and retailers, aiming to bolster its balance sheet and concentrate on enhancing its retail offerings.

As part of the deal, Advantage Solutions will divest Waypoint, Marlin Connections, Primeline, CSSI, Ettros, Halverson Group, and Coleman and Greear & Associates, combining them with KeyImpact Sales & Systems under Prospect Hill to form Acxion Foodservice. The agreement will see Advantage receiving total proceeds of approximately $100 million, primarily in cash alongside a continuous 7.5% stake in the newly formed entity, Acxion. Additionally, Advantage will secure a seat on Acxion’s board of directors, maintaining an ongoing partnership and interest in the entity’s success.

Advantage CEO Dave Peacock expressed the company’s vision behind this transaction, highlighting the importance of concentrating on core retail capabilities while engaging in adjacent segments through strategic partnerships. The proceeds from this sale are primarily earmarked for debt reduction, reinforcing Advantage’s financial health and enabling strategic investments to further nurture its core retail business segments.

Advantage Solutions Reinforces Retail Focus with $100 Million Foodservice Sale

In addition to the sale, Advantage Solutions has embarked on optimizing its operational efficiency through agreements with third-party technology firms, including Genpact and Tata Consultancy Services (TCS). These partnerships are aimed at enhancing back-office functions and IT services, leveraging advanced AI-powered technology and automation to streamline processes and improve service delivery.

These recent strategic decisions, including the sale of foodservice businesses and technological collaborations, are part of Advantage’s broader plan to accelerate growth, improve financial discipline, and position the company for profitable expansion. By simplifying its business model and focusing on its strengths in the retail sector, Advantage aims to convert shoppers into buyers more effectively for its consumer-packaged goods and retailer customers.

The divestiture of its foodservice businesses marks a significant milestone for Advantage Solutions, allowing the company to sharpen its focus on its primary retail and marketing services. This strategic realignment, coupled with the infusion of technology and process optimization, positions Advantage Solutions to better serve its clients and compete more effectively in the dynamic retail industry. The partnership with Prospect Hill and the formation of Acxion Foodservice are poised to create new opportunities for innovation and growth in the foodservice sector, benefiting both companies and their stakeholders.