Campbell Soup Widens Its Grip on the Food Industry With $2.7 Billion Acquisition of Rao’s Sauce Maker

Campbell Soup announced Monday it will buy Sovos Brands, the parent company of Rao’s pasta sauce, in a deal valued at $2.7 billion.

Campbell will pay $23 per share for Sovos.

Last year, Sovos Brands posted more than $837 million in annual adjusted net sales, the company said.

“This acquisition fits perfectly with and accelerates our strategy of focusing on one geography, two divisions and select key categories that we know well,” Campbell Soup CEO Mark Clouse said in a statement. “Our focused strategy has enabled us to deliver strong results over the last five years, enhance our brands and capabilities, and generate strong cash flow to lower debt.”

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