Irvine-based Advantage Sales & Marketing is seeing Merrill Lynch & Co. and J.W. Childs Associates take a majority stake in the grocery products distributor in a deal valuing the company at $1.05 billion.
Washington, D.C.-based Allied Capital Corp. is selling part of its stake in Advantage to Merrill and J.W. Childs.
Allied and Advantage executives are set to keep a minority stake in the company.
Advantage handles sales, marketing and distribution for companies that sell in supermarkets and other stores. Customers include Del Monte Foods Co., Procter & Gamble Co.’s Gillette and Unilever PLC.
Companies contract with Advantage to make sure their products are on store shelves and are promoted.
Advantage’s yearly sales are about $700 million.
The company is one of the top three players in its business, along with Jacksonville, Fla.-based Acosta Sales Co. and Plano, Texas-based Crossmark.
In 2004, Allied paid about $257 million for its majority stake in Advantage. The investment company expects a gain of $415 million in the sale to Merrill Lynch and J.W. Childs.
