In a surprise, that interestingly occurred on the second day of the PLMA trade show Advantage Solutions (Advantage) and Daymon Worldwide (Daymon) announced today that they are merging. Terms of the global transaction were not disclosed. The merger combines Daymon’s long history of private brand brokerage and in-store sampling and other services with Advantage’s national brand sales, marketing, and merchandising services. The combined company will operate in over 45 countries
This announcement comes less then a year after China’s supermarket chain operator Yonghui Superstores Co Ltd teamed up with Bain Capital Private Equity to buy Daymon for $413 million. Yonghui invested $165 million for a 40% stake in Daymon, while Bain Capital will buy 60%.
As part of today’s agreement, the current equity investors in Daymon (Bain and Yonghui) will become part owners of the holding company for Advantage and appoint members to its board of directors. Daymon will continue to operate as a separate legal entity headquartered in Stamford, Conn.
“Today’s evolving, omni-channel landscape requires new, innovative solutions and together, Advantage and Daymon will provide the furthest reach, deepest insights, and broadest services – a collaborative effort that far exceeds what the organizations could achieve individually,” said Tanya Domier, Advantage Chief Executive Officer. “Combining Advantage’s strengths in brand-centric sales, marketing, and technology solutions with Daymon’s strengths in retailer-centric solutions creates the strongest provider of manufacturer and retail services in the industry. The separation between brand-centric and retailer-centric businesses will enable each to focus on its core competencies while leveraging back-office scale.”
“Associates at Advantage and Daymon are aligned in their unstoppable drive to ensure that the return on investment for our business partners is greater than ever and that cash registers ring louder and more often,” said Jim Holbrook, Daymon Chief Executive Officer. “We all look forward to serving clients and customers with the best possible solutions to help drive their businesses – that is our commitment.”