Consumer
Campbell Soup to Buy Maker of Rao’s Pasta Sauce for $2.7 Billion
- Deal gives Campbell a foothold in premium sauces, frozen meals
- S&PGR downgrades Campbell on expected decline in cash flow
Signage outside the Campbell Soup Co. factory in Toronto.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Campbell Soup Co. agreed to buy Sovos Brands Inc. in a deal valued at $2.7 billion, expanding the soupmaker’s presence in frozen meals and giving it a foothold in the premium pasta sauce market.
The acquisition of Sovos, best known for the Rao’s pasta sauce brand, widens Campbell’s presence in key food categories. Rao’s accounted for 69% of adjusted net sales last year for Sovos, which went public in 2021. The transaction is expected to close by the end of December.