August 7, 2023
Campbell Soup Co. is planning to acquire Sovos Brands for $2.7 billion.'Sovos manufacturers Michael Angelo's and Rao's pasta sauces, Noosa yogurt, and more.
The purchase is the largest in five years for the food and beverage giant and allows the company to expand its meals business with other brands such as Michael Angelo’s, Rao's and Noosa.
The last significant purchase for Campbell's was for snack manufacturer Snyders-Lance in 2018.
The acquisition will add pasta sauces, dry pasta, soups, frozen entrées, frozen pizza, and yogurt to its portfolio. The purchase is highlighted by the Rao’s pasta sauce brand, which accounted for 69% of adjusted net sales last year for Sovos.
Campbell's meals and beverages division includes its ready-to-serve soups, tomato juice, gravies, and dinner sauces that are sold in the U.S. and Canada, and was its top revenue generator in 2022, according to its annual report.
Sovos reported a 16.3% increase in organic net sales for the 2nd quarter, driven by increased volumes despite higher pricing.
The transaction is expected to close by the end of December.
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