Campbell Soup buys firm behind pasta sauce brand Rao’s for $2.7billion
- Campbell’s has agreed a deal to buy popular US pasta sauce brand Rao’s
- The purchase of Sovos Brands comes at a cost of approximately $2.7 billion
- Rao’s was responsible for nearly 70 per cent of Sovos Brands’ sales in 2022
The Campbell Soup Company is purchasing Sovos Brands, the parent company of Rao’s, a popular brand of pasta sauces.
At $23 per share, the acquisition is totalled at approximately $2.7 billion, the companies announced in a joint press release on Monday.
The purchase comes after Rao’s impressive performances in the market, with the brand being responsible for nearly 70 per cent of Sovos’ sales in 2022.
Campbell’s said the deal is expected to be closed by the end of December this year.
Rao’s first hit shelves in 1992 to bring home cooks a signature taste of the 10-table restaurant, which is one of the most exclusive dining spots in New York City.
The Campbell Soup Company is purchasing Sovos Brands, the parent company of Rao’s, a popular brand of pasta sauces in the US
Rao’s was responsible for nearly 70 per cent of Sovos’ sales in 2022. The deal is expected to be closed by the end of this year
Situated in the city’s East Harlem district, its clientele has hosted a number of famous names including Robert De Niro, Al Pacino, Hilary Clinton and Donald Trump.
The Campbell Soup Company was founded in 1869 and was a huge commercial success before Andy Warhol’s 1962 illustration of 32 cans of the brand’s soup cemented it as a cultural icon.
The Campbell’s meals and beverages division made the ‘strategic decision’ to add a ‘high-growth, market-leading premium portfolio’ to include more soups, dry pasta, frozen products and yogurts from brands such as Rao’s, Michael Angelo’s and noosa.
‘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 a statement.
‘This acquisition fits perfectly with and accelerates our strategy of focusing on one geography, two divisions and select key categories that we know well’, continued Mr Clouse.
As well as boosting the meals and beverages division of the company, Clouse said it would add to Campbell’s ‘faster-growing and differentiated snacks division.’
Todd Lachman, Founder, President and CEO of Sovos Brands, Inc. called it a ‘momentous occasion’ for the company.
