Associated Wholesale Grocers Sells Accounting Subsidiary to FMS

Associated Wholesale Grocers (AWG) has inked a deal to sell its wholly owned subsidiary, Retail Accounting Solutions (RAS) to with FMS Solutions Holdings (FMS). As part of the arrangement, the Kansas City-based AWG – which formed RAS to ensure seamless integration following its acquisition of Affiliated Foods Midwest in October 2016 – will continue to assist FMS during the transition so that all current RAS clients receive continuous accounting and payroll services without any disruption to their operations.

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,” says Gary Koch, CFO of AWG.  “The strong business partnership between AWG and FMS gives us the knowledge that our members will be well taken care for these services,” added Koch.

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 four countries, including 46 U.S. states, Canada and 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,” says Bob Graybill, CEO of FMS.

“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”

Further, Graybill said RAS’s Norfolk, Neb.-based 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,” says Jon Cline, VP of operation for FMS. “We are fortunate to add a talented, long tenured team in Norfolk, which will certainly facilitate the onboarding effort.”

The deal is slated to close on Oct. 21.