Campbell Soup introduced Monday it should purchase Sovos Manufacturers, the mum or dad firm of Rao’s pasta sauce, in a deal valued at $2.7 billion.
Campbell can pay $23 per share for Sovos.
Final yr, Sovos Manufacturers posted greater than $837 million in annual adjusted internet gross sales, the corporate stated.
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“This acquisition suits completely with and accelerates our technique of specializing in one geography, two divisions and choose key classes that we all know nicely,” Campbell Soup CEO Mark Clouse stated in an announcement. “Our centered technique has enabled us to ship sturdy outcomes during the last 5 years, improve our manufacturers and capabilities, and generate sturdy money circulate to decrease debt.”
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Campbell’s meals and drinks division contains its ready-to-serve soups, tomato juice, gravies, and dinner sauces which might be offered within the U.S. and Canada, and was its prime income generator in 2022, in line with its annual report.
Campbell’s stated it plans to finance the acquisition via the issuance of latest debt. Closing of the deal is anticipated by the top of December and is topic to Sovos Manufacturers’ stockholder approval and customary closing situations, together with regulatory approvals.
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The transaction has already been permitted by each firms’ boards of administrators.
|CPB||CAMPBELL SOUP CO.||44.41||-0.73||-1.62%|
|SOVO||SOVOS BRANDS INC||22.52||+4.50||+24.97%|
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Reuters contributed to this report