Campbell Soup Plans To Buy Montclair-Based Pasta Sauce Company

MONTCLAIR, NJ — Campbell Soup Co. plans to buy Sovos Brands Inc., the parent company of Montclair-based Rao’s Homemade line of sauces, for a whopping $2.7 billion, reports say.

According to Sovos Brands, Campbell – which makes its home in Camden – has agreed to acquire it for $23 per share in cash.

Colorado-based Sovos Brands acquired Rao’s in 2017. Rao’s set up its headquarters in Montclair in 2019.

In addition to Rao’s, Sovos is also the parent company of other food brands, such as Noosa Yoghurt and Michael Angelo’s frozen food.

Sovos Brands had an annual adjusted net sales of $837 million in calendar year 2022. Rao’s net sales of $154.9 million – which increased 29.3 percent year-over-year – was a big part of that success, the company announced in a second quarter financial statement.

“I am pleased to announce that Sovos Brands will be joining the Campbell family, a leading packaged food business aligned with our vision of bringing consumers delicious food for joyful living,” president and CEO Todd Lachman said.

“When we started Sovos Brands, our ambition was to create a one-of-a-kind, high-growth food company – I am incredibly proud of what we have built, and the value created for all stakeholders,” Lachman said.

According to Lachman, the transaction is expected to create “substantial value” for shareholders, resulting in a 92 percent increase from Sovos’ 2021 IPO price.

Campbell’s president and CEO Mark Clouse said that the purchase will strengthen and diversify the company’s meals and beverages division.

“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,” Clouse said.

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