By Denny Jacob

Advantage Solutions sold its collection of foodservice businesses to Prospect Hill Growth Partners in a bid to focus on its core retail businesses and strengthen its balance sheet.

Advantage Solutions, which provides sales and marketing services to consumer goods manufacturers and retailers, said the foodservice businesses would be combined with KeyImpact Sales & Systems as part of the sale. Advantage said it would receive proceeds of about $100 million, a combination of mostly cash and a continuing 7.5% stake in the combined entity.

The company said it plans to use the majority of the proceeds of the deal to pay down debt.

Separately, Advantage said that it entered into two separate agreements with third-party technology companies to optimize and streamline a host of business processes and administrative functions.

Irvine, Calif.-based Advantage will team with Genpact to create a new go-to-market model leveraging the two sides' strengths. Through a separate deal with Tata Consultancy Services, Advantage will modernize its information-technology services.

Write to Denny Jacob at

(END) Dow Jones Newswires

01-31-24 1742ET