Advantage Solutions, a retail services firm that recently relocated its headquarters to Clayton, has finalized the sale of part of its advertising business for $185 million. The company has experienced substantial growth over the years through acquisitions. In the past year, it has been focusing on restructuring and selling off non-core components to better serve its primary functions of providing labor and services to retail companies.
Under Dave Peacock’s leadership as CEO, Advantage Solutions has sold several entities, including an analytics firm, marketing business, content management platform, and a software business. The headquarters was also relocated from Irvine, California to Clayton’s Commerce Bank Tower in April. The focus of the restructuring under Peacock’s leadership is to concentrate on areas where Advantage Solutions has a competitive advantage while moving away from sectors already dominated by large competitors. It is estimated that about 75% of the restructuring has been completed, with the remainder expected to be finalized by autumn.
Advantage will receive $130 million in cash upon the deal’s closure in the third quarter, with two more installments scheduled for 12 and 18 months after. The company plans to utilize most of the proceeds to reduce debt and reinvest in the business with the goal of strengthening its position in the retail services industry. The recent sale mostly concludes Advantage Solutions’ restructuring efforts as they have simplified their portfolio around core capabilities to lay the groundwork for future growth.
In conclusion, Advantage Solutions’ recent move highlights how companies can streamline their operations and focus on areas where they have a competitive advantage by selling off non-core components and reallocating resources towards growth opportunities. With this newfound focus on core capabilities and reduced debt levels, Advantage Solutions is well positioned for continued success in
