In a deal both sides deemed “Mmm, Mmm, Good!” the Campbell Soup Company announced Monday that it agreed to buy packaged food makers Sovos Brands Inc. — which produces such products as Rao’s sauces, Michael Angelo’s packaged meals and noosa yogurt — for $2.7 billion.
New Jersey-based Campbell was advised on the finance side by Evercore with Davis Polk & Wardwell LLP acted as Campbell’s legal counsel. Sovos’ advisors included Goldman Sachs on finance with Hogan Lovells and Richards, Layton & Finger advising on legal matters. Skadden advised Goldman Sachs.
Major Sovos investors Advent International were advised by Weil Gotshal with a team led by Partners Ramona Nee from Boston and James Griffin in Dallas. The Weil team also included Jennifer Britz and Michael Nissan, both in New York.
The $2.7 billion all-cash offer has already been approved by the boards of the various parties. The Sovos brands will be managed under Campbell’s meals and beverage division. The deal awaits stockholder approval and an expected closing in December 2023.
For his part Griffin’s experience includes a number of eclectic deals. Last year he advised Advent International in its acquisition of the geospatial technologies firm Maxar, a deal that valued Maxar at $6.4 billion. But he’s also familiar with the food and beverage space; he led a Weil team that advised Main Event in its $835 million acquisition by Dave & Buster’s.
Griffin also advised Advent on the sale of its majority stake in Bojangles’ Inc. to Durational Capital Management and the Jordan Co. in 2018 for $594 million.
The Skadden team advising Goldman Sachs was led from New York by M&A partners Alexandra McCormack and Paul Schnell; and Corporate associates Cameron Adamson (in Toronto) and Xiang (Shawn) Li (New York).
In 2022, Sovos Brands reported sales of $837 million and a net sales growth rate of 28 percent between 2019 and 2022. In fiscal 2022, the company’s Rao’s brand represented approximately 69 percent of Sovos’ adjusted net sales, an organic growth of 34.9 percent compared to the prior year.
Claire Poole contributed to this article.