Rao's sauce maker Sovos surges after Campbell Soup agrees to buy co for $2.33 bln

Sovos Brands

07/08/2023 13:03

** Shares of pasta sauces maker Sovos Brands  SOVO.O  jump
~25% to $22.52 premarket
    ** Packaged food firm Campbell Soup  CPB.N  to acquire SOVO
for $2.33 bln, as CPB looks to diversify its meals & beverages
division
    ** CPB to pay $23 per share in cash for SOVO, representing a
premium of 27.6% on SOVO's last close
    ** CPB shares down ~2% at $44.39
    ** Known for Rao's pasta sauces, SOVO has a market cap of
about $1.82 bln, based on Refinitiv data
    ** Separately, SOVO reports Q2 net sales of $217.6 mln, up
10.2% from last year; its organic net sales rose 16.3%, with
8.9% growth in volumes
    ** CPB says deal, which is expected to close by the end of
December 2023, would add to its adjusted EPS by second year
    ** As of last close, CPB down ~20% YTD, while SOVO has
gained 25%

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com))