An earlier version of this article had a typo in the price Campbell Soup is paying. The price is $23 not $32. The article has been corrected.
Campbell Soup Co.
CPB,
said Monday it has agreed to acquire Sovos Brands Inc., parent to pasta sauces and other foods sold under the brand names Rao’s, Michael Angelo’s and noosa, in a deal with an enterprise value of about $2.7 billion. Campbell will pay $23 per Sovos share in cash. Sovos’ stock closed Friday at $18.02. The deal is expected to boost adjusted per-share earnings by the second year and to close by end-December. Campbell Soup will fund the deal by issuing new debt. Sovos had annual sales of $837 million in 2022 and has enjoyed compounded annual organic net sales growth of 28% from fiscal 2019 to fiscal 2022. “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 Campbell’s CEO Mark Clouse. “This acquisition fits perfectly with and accelerates our strategy of focusing on one geography, two divisions and select key categories that we know well.” Sovos’ stock soared 26% premarket after a halt for the news was lifted, while Campbell Soup’s stock fell 1.9%.
