## Campbell Soup Finalizes $2.7B Acquisition of Sovos Brands: Premium Sauce Giant Rao's Leads Growth Portfolio

Campbell Soup Company (NYSE: CPB) has successfully closed its acquisition of Sovos Brands, Inc. at $23 per share in an all-cash deal valued at approximately $2.7 billion. The move marks a strategic pivot toward premium, fast-growing categories as the food giant seeks to balance its traditional soup business with higher-margin specialty brands.

**What's in the Deal: Three Power Brands Plus Strategic Synergies**

The Sovos Brands acquisition brings three marquee brands into Campbell's portfolio: Rao's premium pasta sauces, Michael Angelo's frozen entrées, and noosa yogurt. The three-brand combo generated $1.0 billion in net sales during fiscal 2023, with an impressive 25% organic growth rate. Rao's itself is the breakout star—$775 million in annual revenue and 37% organic growth as it charges toward $1 billion brand status.

Campbell CEO Mark Clouse highlighted the strategic fit: "This important milestone adds several market-leading and scaled premium brands to our company. An enhanced Meals & Beverages division paired with our differentiated Snacks division creates an advantaged portfolio that makes Campbell one of the most dependable and growth-oriented large capitalization value names in food."

**New Organizational Play: "Distinctive Brands" Unit Takes Shape**

To accelerate these premium brands, Campbell created a new business unit called Distinctive Brands within its Meals & Beverages division. The unit combines the Sovos acquisition with Pacific Foods—a growth engine Campbell acquired in 2017—creating a dedicated powerhouse for premium offerings.

Risa Cretella, who served as Chief Sales Officer at Sovos Brands, will lead the Distinctive Brands unit as Senior Vice President and General Manager. She reports to Mick Beekhuizen, Campbell's EVP and President of Meals & Beverages. The pairing signals Campbell's confidence in Cretella's track record driving growth at Sovos.

**The Financial Picture: Synergies and Earnings Growth**

Campbell expects the deal to be earnings-accretive by year two, excluding one-time integration costs. The company projects approximately $50 million in annualized cost synergies over the next two years, driven by supply chain optimization and operational scale efficiency.

The integration playbook is already in motion. Campbell's familiarity with premium food categories, proven acquisition integration capabilities, and operational infrastructure position the company for a smooth transition. The company will provide updated fiscal 2024 guidance when reporting third-quarter earnings in June.

**A Strategic Rebuild in Motion**

The Sovos Brands acquisition represents Campbell's calculated bet on premiumization and category diversification. By adding Rao's trajectory, Michael Angelo's heritage, and noosa's yogurt foothold to its existing portfolio, Campbell strengthens its position across faster-growing segments while maintaining its core soup and snack strengths. With $50 million in projected cost synergies and the growth momentum already embedded in these brands, shareholders have measurable value drivers to watch over the next 24 months.