Campbell Soup Company (NYSE:CPB) today announced it agreed to a deal to acquire Sovos Brands for $23 per share in cash.
The deal values Sovos Brands, the owner of brands such as Rao’s, Michael Angelo’s, and Noosa, for about $2.7 billion. Sovos Brands' (NASDAQ:SOVO) stock price closed at $18.02 on Friday, which translates to a market cap of $1.82B.
Campbell said this “strategic transaction adds a high-growth, market-leading premium portfolio of brands to diversify and enhance Campbell’s Meals & Beverages division, providing a substantial runway for sustained profitable growth.”
“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,” said Campbell’s President and CEO Mark Clouse.
The transaction is expected to be accretive to adjusted diluted earnings per share by the second year, excluding one-time integration expenses and costs to achieve synergies, Campbell said.