Business
Campbell Completes Acquisition of Sovos Brands, Inc.
Strengthens and diversifies Campbell’s Meals & Beverages portfolio with additional high-growth brands including premium market-leading Rao’s sauce, along
About this update from The Campbell's Company
[{"type":"text","content":"\n\nStrengthens and diversifies Campbell’s Meals & Beverages portfolio with additional high-growth brands including premium market-leading Rao’s sauce, along with Michael Angelo’s and noosa\n\n\n\nRisa Cretella from Sovos Brands to lead new Distinctive Brands unit within Meals & Beverages division\n\n\n\nSignificant long-term shareholder value creation expected through meaningful sales and earnings growth contribution\n\n\n\n CAMDEN, N.J.--(BUSINESS WIRE)--\nCampbell Soup Company (NYSE: CPB) today announced it has completed the acquisition of Sovos Brands, Inc. (“Sovos Brands”) for $23 per share in an all-cash transaction, which represents a total enterprise value of approximately $2.7 billion.\n\n\n“This important milestone in Campbell’s history adds several market-leading and scaled premium brands to our company,” said Campbell’s President and CEO Mark Clouse. “It accelerates Campbell’s 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.”\n\n\nThe Sovos Brands portfolio consists of a variety of premium products including pasta sauces, dry pasta, soups, frozen entrées, frozen pizza and yogurts under the brand names Rao’s, Michael Angelo’s and noosa. Sovos Brands recently reported $1.0 billion in net sales for the year ended Dec. 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.\n\n\nNew Distinctive Brands Business Unit within Meals & Beverages Combines Acquired Brands with Pacific Foods to Drive Accelerated Growth\n\n\nTo drive the continued growth trajectory of these premium brands, the company has formed a new business unit within the Meals & Beverages division called Distinctive Brands. Pacific Foods, a significant growth engine since it was acquired in December 2017, will be paired with Rao’s, Michael Angelo’s and noosa to form the unit. The other three business units in the Meals & Beverages division are U.S. Retail, Canada and Foodservice.\n\n\nDistinctive Brands will be led by Risa Cretella, Senior Vice P...