USA: Campbell Soup acquires Sovos Brands

Campbell Soup, the US foods manufacturer, has announced the acquisition of Sovos Brands, a fellow packaged food company, in a deal worth around $2.7 billion.

Sovos Brands offers a variety of # products including pasta sauces, dry pasta, soups, frozen meals, frozen pizza, and yohgurts under the brand names Rao’s, Michael Angelo’s and noosa. The firm generated $837 million in annual sales in calendar year 2022, and achieved 28% compound annual organic growth between fiscal 2019 and fiscal 2022.

Commenting on the acquisition, Campbell Soup president and CEO Mark Clouse said: “We’re thrilled to add the most compelling growth story in the food industry and welcome the talented employees who have built a nearly $1 billion portfolio”.

“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”, he added.

Todd Lachman, founder, president and chief executive officer at Sovos Brands, said: “This transaction is expected to create substantial value for our shareholders, resulting in a 92% increase from our 2021 IPO price. As one of the most trusted and respected food companies in North America, 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”.

Source: Campbell Soup