Campbell’s Soup Acquires Sovos Brands in Massive Deal

Campbell’s soup is expanding its reach in the Italian food market with a massive acquisition.

On Monday, the iconic canned soup brand announced that it would be acquiring Sovos Brands in a $2.7 billion deal. Sovos Brands is the maker of Roa’s sauces as well as Michael Angelo’s frozen iItalian entrees and Noosa yogurt.

Campbell’s division already includes its own products, V8 juice and Prego sauces, but adding Rao’s sauces could bring in a different set of customers, CNN reported. The company explained, “Rao’s is the premium, market-leading sauce and it strengthens and diversifies our Meals & Beverages portfolio, complementing the core, mainstream portfolio. It also provides an opportunity for expansion to adjacent categories like frozen meals, dry pasta, premium ready to serve soups.”

The acquisition, deemed a “momentous occasion” by Sovos Brands founder Todd Lachman, will also help Campbell’s make its way into the frozen foods market with Michael Angelo’s frozen entrees.

While Campbells told CNN that Noosa Yogurt “is not core to our strategy,” the popular yogurt brand and its strong profitability will definitely add value to the acquisition.