Campbell Soup Company has completed the acquisition of Sovos Brands for $23 per share in an all-cash transaction, which represents a total enterprise value of approximately $2.7 billion. The deal’s finalization, announced on March 12, includes frozen entrées, frozen pizza and yogurts marketed under the brand names Michael Angelo’s, Rao’s and noosa, as well as a variety of premium pasta sauce, dry pasta, and soup products
“This important milestone in our history adds several market-leading and scaled premium brands to the company,” stated Mark Clouse, chief executive officer of Camden, New Jersey, USA-headquartered Campbell. “It accelerates our successful strategy and provides a substantial runway for sustained profitable growth. An enhanced Meals & Beverages division paired with our differentiated Snacks division creates an advantaged portfolio that makes Campbell one of the most dependable and growth-oriented large capitalization value names in food.”
Sovos Brands recently reported $1.0 billion in net sales for the year ended December 30, 2023 with an organic net sales increase of 25%1 year over year. Rao’s organic net sales increased 37%2, generating $775 million in annual revenue as it continued its march toward becoming a $1 billion brand.
“We’re excited to welcome the talented Sovos team to Campbell,” said Mick Beekhuizen, Campbell’s executive vice president and president of the Meals & Beverages division. “Risa Cretella is an accomplished leader with a strong record of growth and impact at Sovos, which makes her the right person to lead our Distinctive Brands business unit and build upon the trajectory and incredible momentum of these premium brands. Our Distinctive Brands business unit will fuel the transformation of our Meals & Beverages categories to accelerate growth.”
While Campbell, a legacy company founded in 1869, is largely associated with canned soup, its expansive product line runs the gamut from pork and beans, spaghetti, ready meals and sauces to snacks, baked goods and juices. It is ranked among the largest processed food companies in North America.
