In a Monday announcement, the two companies said they had entered an agreement for Campbell's to acquire Sovos for
The transaction will help diversify and strengthen Campbell’s Meals & Beverages division, Campbell’s President and CEO
Besides its namesake soups, Campbells makes Prego sauce and Goldfish crackers.
In addition to Rao's sauces, Sovos products include dry pasta, soups, frozen entrees and yogurt under additional brands Michael Angelo’s and noosa. According to Monday's press release, Rao's is Sovos' most popular brand, representing about 69% of the company's
“We have built a one-of-a-kind, high growth food company focused on taste-led products across a portfolio of premium brands, anchored by the Rao’s brand,”
Lachman added that the transaction “creates substantial value” for shareholders, with the purchase price nearly double the
According to Monday's announcement, Campbell will issue new debt to finance the acquisition. The transaction is expected to close in December, subject to Sovos stockholder and regulatory approval, as well as other closing conditions.
While Sovos and Campbell celebrated the transaction in Monday's announcement, the deal has received some pushback online — particularly from loyal Rao's fans. Some expressed concern over the new ownership possibly changing the beloved sauces' taste or ingredients. Rao's currently advertises its Rao's Homemade sauces as having no water, added sugar, tomato paste or colors.
When reached by The Associated Press Tuesday morning, media contacts for both Campbell and Sovos pointed to Clouse's comments on CNBC Monday night.
“We’re not touching it! Anyone who thinks we’re going to touch the sauce, no," Clouse told CNBC.
According to Rao's website, the brand's history dates back to 1896 — when Italian immigrant
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