Irvine sales and marketing firm Advantage Solutions Inc. delivered an update to the market Monday, following last month’s news it would go public through a reverse merger.
The company said in its update it has begun a refinance of its existing debt, while also providing some preliminary third-quarter results.
Advantage reported it expects revenue for the third quarter to come in between $779 million and $789 million, down 20% from the year-ago period. Adjusted EBITDA for the same period is expected to be between $134 million to $138 million, down 6% from a year earlier.
Advantage CEO Tanya Domier said the results reflect an improvement from the second quarter of this year, indicating the start of a recovery from the impacts of COVID-19.
“We are pleased with improving momentum in the third quarter and we believe it represents the beginning of a recovery from the second quarter’s COVID-19 driven decline,” Domier said in a statment. “The sequential revenue improvement we saw in the third quarter was broad based across both the sales and marketing segments and was primarily driven by the parts of our business most negatively impacted by COVID-19 beginning their return-to-normal operations, as well as from continued strength in the other businesses.”
Growth in digital and e-commerce, along with the return of in-store sampling all helped drive the business in the third quarter.
Full results for the quarter are expected in November.
Advantage in September said it would go public via a reverse merger with Naples, Fla.-based Conyers Park II Acquisition Corp, a special purpose acquisition company trading on the Nasdaq under the ticker CPAA. The deal is expected to go before stockholders for approval on Oct. 27.
The transaction pegged Advantage’s enterprise value at $5.2 billion, which equates to a 10.1x multiple on its projected 2021 adjusted EBITDA of $515 million.
