Home » Business » Campbell Soup to Acquire Sovos Brands for $2.33 Billion, Expanding its Premium Italian Sauces Business

Campbell Soup to Acquire Sovos Brands for $2.33 Billion, Expanding its Premium Italian Sauces Business

Campbell Soup, a leading packaged food maker in the U.S., has announced its plans to acquire Sovos Brands, the owner of Michael Angelo’s and Rao’s, for $2.33 billion in cash. The deal aims to strengthen Campbell’s meals and beverages business by adding the maker of premium Italian sauces to its portfolio.

Under the agreement, Campbell will pay $23 per share for Sovos, representing a nearly 28% premium to the stock’s last closing price. While Sovos’ shares were trading at $22.48, Campbell’s stock slipped 1.2% to $44.58 in early trade.

The global food and beverage industry has seen a surge in deal-making activity in recent quarters. Last month, Unilever announced its acquisition of frozen yogurt brand Yasso in North America, while Mars Inc agreed to buy Kevin’s Natural Foods. Campbell Soup itself sold Emerald Nuts to Flagstone Foods in May, although the financial details of the transaction were not disclosed.

Campbell’s meals and beverages division, which includes ready-to-serve soups, tomato juice, gravies, and dinner sauces sold in the U.S. and Canada, was the company’s top revenue generator in 2022, according to its annual report. The acquisition of Sovos is seen as a strategic move to strengthen Campbell’s product portfolio with fast-growing brands, according to CFRA Research analyst Arun Sundaram.

Packaged food makers have experienced a boost as cautious consumers have preferred to spend on essentials and limit their visits to restaurants. These companies have also raised product prices multiple times to protect their margins from higher input costs.

Sovos reported a 16.3% increase in organic net sales for the second quarter, driven by higher volumes despite higher pricing.

The deal, including debt, is valued at $2.7 billion. Campbell plans to finance the acquisition through new debt. The transaction is expected to close by the end of December and is likely to contribute to adjusted earnings per share by the second year after the deal is finalized.
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How does Campbell Soup’s acquisition of Sovos Brands aim to strengthen its meals and beverages business?

Campbell Soup, a leading packaged food maker in the U.S., has announced its plans to acquire Sovos Brands, the owner of Michael Angelo’s and Rao’s, for $2.33 billion in cash. The deal aims to strengthen Campbell’s meals and beverages business by adding the maker of premium Italian sauces to its portfolio.

The agreement states that Campbell will pay $23 per share for Sovos, representing a nearly 28% premium to the stock’s last closing price. While Sovos’ shares were trading at $22.48, Campbell’s stock slipped 1.2% to $44.58 in early trade.

The global food and beverage industry has seen an increase in deal-making activity recently. Unilever announced its acquisition of frozen yogurt brand Yasso in North America last month, while Mars Inc agreed to buy Kevin’s Natural Foods. Campbell Soup also sold Emerald Nuts to Flagstone Foods in May.

Campbell’s meals and beverages division, which includes ready-to-serve soups, tomato juice, gravies, and dinner sauces sold in the U.S. and Canada, produced the most revenue for the company in 2022. The acquisition of Sovos is seen as a strategic move to strengthen Campbell’s product portfolio with fast-growing brands.

Packaged food makers have experienced a boost as cautious consumers have preferred to spend on essentials and limit their visits to restaurants. These companies have also raised product prices multiple times to protect their margins from higher input costs.

Sovos reported a 16.3% increase in organic net sales for the second quarter, driven by higher volumes despite higher pricing.

The deal, including debt, is valued at $2.7 billion. Campbell plans to finance the acquisition through new debt. The transaction is expected to close by the end of December and is likely to contribute to adjusted earnings per share by the second year after the deal is finalized.

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Hello, would you like to find out more details about Campbell Soup, a leading packaged food maker in the U.S., has announced its plans to acquire Sovos Brands, the owner of Michael Angelo's and Rao's, for $2.33 billion in cash. The deal aims to strengthen Campbell's meals and beverages business by adding the maker of premium Italian sauces to its portfolio.
world-today-news.com/campbell-soup-to-acquire-sovos-brands-for-2-33-billion-expanding-its-premium-italian-sauces-business/" title="Campbell Soup to Acquire Sovos Brands for .33 Billion, Expanding its Premium Italian Sauces Business">raised product prices multiple times</a> to protect their margins from <a href="http://www.world-today-news.com/it-is-here-traders-began-to-rise-brutally-nobody-wants-to-be-the-last-the-prices-go-well/" title="It is here. Traders began to rise brutally. Nobody wants to be the last, the prices go well">higher input costs</a>.\r\nSovos reported a 16.3% increase in <a href="http://www.world-today-news.com/moderna-closes-higher-after-research-into-effectiveness/" title="Moderna closes higher after research into effectiveness">organic net sales</a> for the second quarter, driven by higher volumes despite higher pricing.\r\nThe deal, including debt, is valued at $2.7 billion. Campbell plans to finance the acquisition through new debt. The transaction is expected to close by the end of December and is likely to contribute to adjusted earnings per share by the second year after the deal is finalized. <br/> <img class="ximage_class" src="https://pixabay.com/get/g546204128cee4be0d3ef41791214b5191d42844647f439daadb6216f8d91eff85ca8eb6e621f23d24478e376c8423a3adae7ffc63d74e7a2c6c30cb4af86af0f_640.jpg" alt="detail photograph"> <h2> How does Campbell Soup's acquisition of Sovos Brands aim to strengthen its meals and beverages business?</h2><span> Campbell Soup, a leading packaged food maker in the U.S., has announced its plans to acquire Sovos Brands, the owner of Michael Angelo's and Rao's, for $2.33 billion in cash. The deal aims to strengthen Campbell's meals and beverages business by adding the maker of premium Italian sauces to its portfolio.<br /><br />\r\n<br /><br />\r\nThe agreement states that Campbell will pay $23 per share for Sovos, representing a nearly 28% premium to the stock's last closing price. While Sovos' shares were trading at $22.48, Campbell's stock slipped 1.2% to $44.58 in early trade.<br /><br />\r\n<br /><br />\r\nThe global food and beverage industry has seen an increase in deal-making activity recently. Unilever announced its acquisition of frozen yogurt brand Yasso in North America last month, while Mars Inc agreed to buy Kevin's Natural Foods. Campbell Soup also sold Emerald Nuts to Flagstone Foods in May.<br /><br />\r\n<br /><br />\r\nCampbell's meals and beverages division, which includes ready-to-serve soups, tomato juice, gravies, and dinner sauces sold in the U.S. and Canada, produced the most revenue for the company in 2022. The acquisition of Sovos is seen as a strategic move to strengthen Campbell's product portfolio with fast-growing brands.<br /><br />\r\n<br /><br />\r\nPackaged food makers have experienced a boost as cautious consumers have preferred to spend on essentials and limit their visits to restaurants. These companies have also raised product prices multiple times to protect their margins from higher input costs.<br /><br />\r\n<br /><br />\r\nSovos reported a 16.3% increase in organic net sales for the second quarter, driven by higher volumes despite higher pricing.<br /><br />\r\n<br /><br />\r\nThe deal, including debt, is valued at $2.7 billion. Campbell plans to finance the acquisition through new debt. The transaction is expected to close by the end of December and is likely to contribute to adjusted earnings per share by the second year after the deal is finalized. ?">
 

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