Campbell Soup completes $2.7B deal for Rao's sauce maker
CAMDEN - Campbell Soup Co. has completed its $2.7 billion acquisition of Sovos Brands Inc., the producer of Rao's pasta sauce.
The all-cash purchase offers "a substantial runway for sustained profitable growth," Campbell CEO Mark Clouse said in a March 12 statement.
Colorado-based Sovos also makes frozen entrees and pizzas, soup and yogurt under the Rao's, Michael Angelo and noosa brands.
It recently reported annual net sales of $1 billion, thanks largely to its Rao's line of premium sauces.
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Camden-based Campbell posted net sales of $9.4 billion in its last fiscal year.
Campbell Soup shops for growth prospects
Campbell has acquired three firms in recent years, all with the expectation of spurring sales growth.
It paid $2.7 billion in 2018 for Snyder's-Lance, the North Carolina-based snack company.
Campbell in 2017 bought Pacific Foods of Oregon, which makes organic soups and broths, along with other products, for $700 million.
Sovos and Pacific Foods products will be part of a new Distinctive Brands business unit in Campbell's Meals & Beverage unit.
The new unit will be led by Risa Cretella, formerly senior vice president and general manager at Sovos.
The future of noosa yogurt products is uncertain. Campbell has said it will consider "strategic alternatives" for the brand.
Campbell said it expects savings of about $50 million as it integrates Sovos operations with its supply chain and other systems.
Campbell's Meals & Beverage unit also includes the company's soups and Prego spaghetti sauce, as well as Swanson foods, Pace salsas and V8 beverages.
A Snacks division makes Pepperidge Farm and Snyders' Lance products.
Jim Walsh is a senior reporter for the Courier-Post, Burlington County Times and The Daily Journal. Email: Jwalsh@cpsj.com.
This article originally appeared on Cherry Hill Courier-Post: Sovos Brands joins new 'distinctive' unit at Campbell Soup Co.
