Advantage Solutions Inc. (NASDAQ: ADV) has announced the completion of the sale of its digital advertising platform, Jun Group, to Verve Group SE, formerly known as Media and Games Invest SE. The transaction has resulted in gross proceeds of approximately $185 million, with Advantage receiving about $130 million in cash at the close of the sale. Additionally, Verve Group is expected to make two more payments to Advantage, 12 months and 18 months post-close.
The company plans to utilize the majority of the initial proceeds to pay down debt and reinvest in the business. Advantage Solutions remains committed to reducing its net leverage ratio over the long term to less than 3.5 times.
Dave Peacock, the CEO of Advantage Solutions, expressed that the sale of Jun Group represents a significant step in sharpening the company's focus on providing leading services to its retailer and consumer packaged goods (CPG) clients. He emphasized that this transaction largely completes the business portfolio simplification, enabling strategic investment in growth while reducing debt.
Advantage Solutions is a leading provider of outsourced sales, experiential, and marketing solutions. Its services, which are data* and technology-driven, include headquarter sales, retail merchandising, in-store and online sampling, digital commerce, omnichannel marketing, and retail media. The company has offices throughout North America and strategic investments in select markets worldwide.
This press release showcases Advantage Solutions' strategic financial move to streamline its business portfolio and strengthen its position in the industry. The specific figures provided offer a clear insight into the financial impact of the sale of Jun Group and the company's plans for the utilization of the proceeds. As a result of these announcements, the company's shares have moved 1.6% on the market, and are now trading at a price of $4.08. For more information, read the company's full 8-K submission here.
