Last updated on March 25th, 2021 at 07:23 pm
Associated Wholesale Grocers Inc. (AWG) 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, Oct. 21. As part of the arrangement, AWG says it 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 an effort to provide its newest cooperative members with a seamless transition of these functions.
According to AWG RAS required the implementation of new systems “in order to build upon and update” the technology platform currently being used. While in the process of assessing future software solutions, AWG was approached by FMS and asked to consider its 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 in Kansas City, Kansas. “The strong business partnership between AWG and FMS gives us the knowledge that our members will be well taken care (of).”
FMS has provided accounting, payroll and financial services to independently owned grocery retailers since 1974. The acquisition of RAS will expand its reach to nearly 4,000 stores located in four 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 long-standing 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 company says the Norfolk, Nebraska, regional office is an excellent geographic fit with its 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 VP of operations.
