CAMDEN (dpa-AFX) - Campbell Soup Co. (CPB) announced Tuesday it has completed the acquisition of Sovos Brands, Inc. for $23 per share in an all-cash transaction, which represents a total enterprise value of approximately $2.7 billion.
The Sovos Brands portfolio consists of a variety of premium products including pasta sauces, dry pasta, soups, frozen entrées, frozen pizza and yogurts under the brand names Rao's, Michael Angelo's and noosa.
The acquisition of Sovos strengthens and diversifies Campbell's Meals & Beverages portfolio with additional high-growth brands including premium market-leading Rao's sauce, along with Michael Angelo's and noosa.
To drive the continued growth trajectory of these premium brands, the company has formed a new business unit within the Meals & Beverages division called Distinctive Brands. Risa Cretella from Sovos Brands will lead the new Distinctive Brands unit.
Cretella most recently served as Chief Sales Officer at Sovos Brands. She will report to Mick Beekhuizen, Campbell's Executive Vice President and President, Meals & Beverages.
The transaction is expected to be accretive to adjusted diluted earnings per share by the second year of ownership, excluding one-time integration expenses and costs to achieve synergies. The company expects annualized cost synergies to reach approximately $50 million over the next two years.
Campbell now plans to evaluate strategic alternatives for the noosa brand, as stated when the acquisition was announced.
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