Campbell Soup to Buy Rao’s Sauce Maker for $2.7 Billion (3)

Campbell Soup Co. agreed to buy Sovos Brands Inc. in a deal valued at $2.7 billion, expanding the soupmaker’s presence in frozen meals and giving it a foothold in the premium pasta sauce market.

The acquisition of Sovos, best known for the Rao’s pasta sauce brand, widens Campbell’s presence in key food categories. Rao’s accounted for 69% of adjusted net sales last year for Sovos, which went public in 2021. The transaction is expected to close by the end of December.

It’s Campbell’s biggest deal since 2017 when it acquired snackmaker Snyder’s Lance for about $6 billion, according to data ...