Campbell has entered into an agreement to acquire Sovos Brands for $2.7 billion. The strategic transaction adds a market-leading premium portfolio of brands to diversify and enhance Campbell’s meals & beverages division.
Sovos Brands had annual adjusted net sales of $837 million in 2022. Its portfolio includes pasta sauces, dry pasta, soups, frozen entrées, frozen pizza, and yogurts under the brand names Rao’s, Michael Angelo’s, and noosa.
Expected to close by the end of the year, the transaction will be subject to Sovos Brands' stockholder approval and customary closing conditions, including regulatory approvals. The acquisition has already been approved by both the Campbell’s and Sovos’ boards of directors.
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“This acquisition fits perfectly with and accelerates our strategy of focusing on one geography, two divisions, and select key categories that we know well,” says Campbell President and CEO Mark Clouse. “Our focused strategy has enabled us to deliver strong results over the last five years, enhance our brands and capabilities, and generate strong cash flow to lower debt. With all this progress, I am confident in our readiness to execute and integrate this important acquisition. The Sovos Brands portfolio strengthens and diversifies our meals & beverages division and, paired with our faster-growing and differentiated snacks division, makes Campbell one of the most dependable, growth-oriented names in food.”
“We have built a one-of-a-kind, high-growth food company focused on taste-led products across a portfolio of premium brands, anchored by the Rao’s brand,” states Todd Lachman, founder, president, and chief executive officer of Sovos Brands. “I’m confident in Campbell’s ability to continue bringing our products to more households and further building on our track record of growth and success for years to come.”
