Business
Campbell to Acquire Sovos Brands, Leader in High-Growth Premium Italian Sauces
Powerful combination expected to fuel earnings growth; Aligns with and advances Campbell’s focused strategic plan Strengthens and diversifies Campbell’s
About this update from The Campbell's Company
[{"type":"text","content":"\nPowerful combination expected to fuel earnings growth; Aligns with and advances Campbell’s focused strategic plan\n\n\n\nStrengthens and diversifies Campbell’s portfolio by enhancing Meals & Beverages division with additional growth-oriented brands, including premium market-leading Rao’s to complement core, mainstream portfolio and provide runway for adjacent category expansion\n\n\n\nOverdelivers stated strategic goal of building a $1 billion sauces business by entering the ultra-distinctive pasta sauce market\n\n\n\nCreates significant shareholder value through meaningful sales growth, EBIT acceleration, and cost synergies\n\n\n\nExpected to be accretive to adjusted diluted earnings per share by the second year\n\n\n\nTransaction conference call today at 8:00 a.m. EST\n\n\n\n CAMDEN, N.J. & LOUISVILLE, Colo.--(BUSINESS WIRE)--\nCampbell Soup Company (NYSE: CPB) and Sovos Brands, Inc. (Nasdaq: SOVO) today announced that the companies have entered into an agreement for Campbell to acquire Sovos Brands, Inc. for $23 per share in cash, representing a total enterprise value of approximately $2.7 billion. This represents a 14.6x adjusted EBITDA multiple1 including expected annual run rate synergies of approximately $50 million. The strategic transaction adds a high-growth, market-leading premium portfolio of brands to diversify and enhance Campbell’s Meals & Beverages division, providing a substantial runway for sustained profitable growth.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230806182856/en/\nSovos Brands had annual adjusted net sales of $8372 million in calendar year 2022 and is a compelling growth story as a North America focused food company with compounded annual organic net sales growth rate of 28%3 from fiscal 2019 to fiscal 2022 offering 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. The flagship Rao’s brand, which represented approximately 69%4 of Sovos Brands adjusted net sales in fiscal 2022, grew organic net sales by 34.9%5 compared to the prior year.\n\n\n“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,” said Campbe...