Associated Wholesale Grocers Announces Sale of Retail Accounting Solutions, Inc.
FMS Solutions to acquire the AWG subsidiary in late October
Kansas City, KS 10/05/17 - Associated Wholesale Grocers, Inc. (AWG) announced today it has agreed to sell its’ wholly owned subsidiary, Retail Accounting Solutions, Inc. (RAS) to FMS Solutions Holdings, LLC (FMS). The effective date for closing on the Stock Purchase Agreement will be Saturday, October 21, 2017. As part of the arrangement, AWG will continue to assist FMS by means of a Transition Services Agreement so that all current RAS clients receive continuous accounting and payroll services without any disruption to their operations. AWG formed RAS specifically in conjunction with the Affiliated Foods Midwest transaction that closed October 2016 in order to provide its’ newest cooperative members with a seamless transition of these functions.
In order to build upon and update the technology platform currently being used, RAS was at a crossroads, which required the implementation of new systems. While in the process of assessing future software solutions, AWG was approached by FMS and asked to consider their interest in acquiring the business. “FMS has a long history of performing services directly for AWG Members (including AWG’s corporate owned stores) and this ideal alternative was pursued and will result in a mutually beneficial outcome” said Gary Koch, CFO of AWG. Koch also said “The strong business partnership between AWG and FMS gives us the knowledge that our members will be well taken care for these services.”
FMS has provided accounting, payroll and financial services to independently owned grocery retail since 1974. The acquisition of RAS will expand their reach to nearly 4,000 stores located in 4 countries including 46 U.S. states, Canada, as well as the Caribbean.
“We are excited to expand the support of the independent grocer and their family owned businesses as well as our longstanding relationship with AWG. This acquisition is equally important to FMS in the opportunity to service new clients as well as the new FMS associates. The RAS Nebraska office consists of an outstanding team experienced in dealing with the stores they have serviced through the years” said Bob Graybill CEO of FMS.
The Norfolk, Nebraska regional office is an excellent geographic fit with FMS’ current operational footprint.
“Our primary focus will be on a smooth transition for our new clients and staff. We are fortunate to add a talented, long tenured team in Norfolk which will certainly facilitate the onboarding effort. I am confident our new retailers and associates will enjoy the relationship with FMS” said Jon Cline, FMS Vice President of Operations.
About FMS Solutions Holdings, LLC (FMS): Headquartered in Baltimore, Maryland, FMS (fmssolutions.com) provides over 3,500 independent retail grocer and independent supermarket operations with financial, accounting and consulting services such as industry benchmarking, best practices, and mission-critical decision support throughout the United States, Canada, and the Caribbean.
About Associated Wholesale Grocers, Inc: AWG is the nation's largest cooperative food wholesaler to independently owned supermarkets, serving over 3,800 locations in more than half of the states in the country and from 10 full-line wholesale Divisions. The consolidated run-rate sales for AWG is $10 B. In addition to its' cooperative wholesale operations, the company also operates subsidiary companies which provide certain real estate and supermarket development services, retail accounting, digital marketing services, and is a wholesale supply provider of health and beauty care, general merchandise, specialty/international foods and pharmaceutical supply.