Current:Home > reviewsCampbell Soup shells out $2.7B for popular pasta sauces in deal with Sovos Brands-DB Wealth Institute B2 Reviews & Ratings
Campbell Soup shells out $2.7B for popular pasta sauces in deal with Sovos Brands
lotradecoin withdrawal limits explained View Date:2024-12-25 16:41:45
Campbell Soup Company just dropped $2.7 billion to acquire a pricey pasta sauce.
This week, the soup company announced it will expand its reach on grocery store shelves with a deal to buy Sovos Brands Inc., the maker of Rao's pasta sauces and other foods.
In a joint press release, the companies announced Campbell's would pay $23 per share. The price represents a 27% premium to Sovos Brands' closing price on Friday.
“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,” Campbell’s President and CEO Mark Clouse said in the release issued Monday. “Our focused strategy has enabled us to deliver strong results over the last five years, enhance our brands and capabilities, and generate strong cash flow to lower debt.
Clouse said the Sovos Brands portfolio "strengthens and diversifies our Meals & Beverages division" and, paired with its snacks division, makes Campbell "one of the most dependable, growth-oriented names in food.”
A 92% IPO increase
Todd Lachman, Founder, President and Chief Executive Officer of Sovos Brands, Inc, said the transaction is expected to create substantial value for the company's shareholders, resulting in a 92% increase from the company's 2021 initial public offering price.
"As one of the most trusted and respected food companies in North America, I’m confident in Campbell’s ability to continue bringing our products to more households and further building on our track record of growth and success for years to come," Lachman said.
Food fight in Congress:How a bitter battle for SNAP benefits in the farm bill affects you
Tyson Foods closing plants:4 more facilities to shutter in 2024
'A strategic decision'
Established in 1896, Rao's hit store shelves in 1992 giving people the ability to take home the taste of the famous 10-table restaurant in New York.
According to the company, its sauces are simmered slowly and made in small batches with "only the best ingredients" including pure Italian olive oil and hand-picked, naturally ripened tomatoes from southern Italy.
Campbell's said it made its decision to add a "high-growth, market-leading premium portfolio" to include more soups, dry pasta, yogurts and frozen items from Rao's, Michael Angelo's and Noosa yogurt - all owned by Sovos.
The move marks Campbell's biggest acquisition since it dropped nearly 5 billion in 2018 to buy pretzel chief Snyder's-Lance.
Natalie Neysa Alund covers breaking and trending news for USA TODAY. Reach her at [email protected] and follow her on X, the platform formerly known as Twitter @nataliealund.
veryGood! (71856)
Related
- Meta kills off misinformation tracking tool CrowdTangle despite pleas from researchers, journalists
- California becomes latest state to restrict student smartphone use at school
- Lady Gaga Reveals Surprising Person Who Set Her Up With Fiancé Michael Polansky
- A state senator has thwarted a GOP effort to lock down all of Nebraska’s electoral votes for Trump
- The president of Columbia University has resigned, effective immediately
- Man pleads guilty to Michigan killing that stoked anti-immigrant campaign rhetoric
- Where Bravo's Craig Conover and Kyle Cooke Stand Today After Seltzer Feud
- How colorful, personalized patches bring joy to young cancer patients
- 2025 COLA estimate dips with inflation, but high daily expenses still burn seniors
- Man pleads guilty to Michigan killing that stoked anti-immigrant campaign rhetoric
Ranking
- 'Alien: Romulus' movie review: Familiar sci-fi squirms get a sheen of freshness
- There are 5 executions set over a week’s span in the US. That’s the most in decades
- Florida officials pressure schools to roll back sex ed lessons on contraception and consent
- West Virginia woman charged after daughter leaves home in handcuffs and seeks neighbor’s help
- Family of man killed by Connecticut police officer files lawsuit, seeks federal probe of department
- Damar Hamlin gets first career interception in Bills' MNF game vs. Jaguars
- FINFII: Embracing Regulation to Foster a Healthy Cryptocurrency Industry
- Gunman who killed 10 at a Colorado supermarket found guilty of murder
Recommendation
-
Collin Gosselin claims he was discharged from Marines due to institutionalization by mom Kate
-
Jazz saxophonist and composer Benny Golson dies at 95
-
Emory Callahan: The 2024 Vietnamese Market Meltdown Is It Really Hedge Funds Behind the Scenes?
-
GM, Ford, Daimler Truck, Kia among 653,000 vehicles recalled: Check car recalls here
-
Judge tells Google to brace for shakeup of Android app store as punishment for running a monopoly
-
Florida police investigate whether an officer used excessive force in shoving a protester
-
Elle King Is Pregnant, Expecting Baby No. 2 With Dan Tooker
-
Florida officials pressure schools to roll back sex ed lessons on contraception and consent