Campbell Soup Company and Sovos Brands have entered into an agreement for Campbell to acquire Sovos Brands for $23 per share in cash, with a total enterprise value of approximately $2.7 billion. The strategic transaction aims to bolster Campbell’s Meals & Beverages division by adding Sovos Brands’ high-growth, premium portfolio of brands, including Rao’s, Michael Angelo’s, and noosa.
The acquisition overdelivers on Campbell’s strategic goal of building a $1 billion sauces business by entering the ultra-distinctive pasta sauce market. The move is expected to create significant shareholder value through sales growth, accelerated EBIT, and cost synergies. The transaction is anticipated to be accretive to adjusted diluted earnings per share by the second year.
The deal is set to strengthen and diversify Campbell’s portfolio, providing a substantial runway for sustained profitable growth and aligning with Campbell’s focused strategic plan. The closing is expected by the end of December 2023, subject to regulatory approvals and customary closing conditions.