Sale Announcement: Advantage Solutions Inc. has entered into an agreement to sell its digital advertising platform, Jun Group, to Verve Group SE for approximately $185 million.

Purpose: The sale aims to streamline Advantage's business focus and strengthen financial position through debt reduction and reinvestment.

Sale Details

• Financial Terms:
  • Proceeds: Approximately $130 million in cash at closing, with additional installments over 12 and 18 months.
  • Utilization: Majority of proceeds allocated to debt repayment and business reinvestment.
  • Closing Timeline: Expected closure in the third quarter, subject to regulatory approvals.

About Jun Group

• Acquisition Background: Advantage acquired Jun Group in 2018, leveraging its technology for digital media campaigns across multiple platforms.
• Client Base: Serves a diverse range of customers, including publishers and healthcare companies, distinct from Advantage's core clientele in retail and consumer-packaged goods.

Strategic Focus

• CEO Statement - Dave Peacock:
  • Highlights completion of portfolio transformation to enhance focus on retailer and CPG services.
  • Emphasizes strategic alignment with core capabilities for sustainable growth.

Financial Impact

• 2018 Revenue Contribution: Jun Group represented less than 5% of Advantage's 2023 consolidated gross revenues.
• 2023 EBITDA Contribution: Less than 10% of Advantage's 2023 consolidated Adjusted EBITDA, including continuing and discontinued operations.

Future Strategy

• Portfolio Evaluation: Advantage continues evaluating its portfolio to optimize capabilities and pursue growth opportunities.
• Financial Outlook: Anticipates low single-digit revenue and Adjusted EBITDA growth for full-year 2024, excluding divestitures and previous deconsolidations.
• Summary: The sale of Jun Group marks a strategic move for Advantage Solutions to enhance financial flexibility and focus on core business segments.
• Future Prospects: Looks forward to leveraging strengthened financials and streamlined operations for sustained growth and market leadership.