Campbell Soup to Acquire Sovos Brands for $2.7B

Ticker: CPB · Form: 8-K · Filed: 2024-09-10T00:00:00.000Z

Sentiment: mixed

Topics: acquisition, food-and-beverage, strategy

Related Tickers: SOVOS

TL;DR

Campbell's buying Sovos Brands for $2.7B to boost snacks & frozen food biz.

AI Summary

Campbell Soup Company (CPB) announced on September 10, 2024, that it has entered into a definitive agreement to acquire Sovos Brands, Inc. for approximately $2.7 billion. This acquisition is expected to significantly expand Campbell's U.S. snacking and frozen categories, particularly with brands like Rao's Homemade and Michael Angelo's. The transaction is anticipated to close in the second half of fiscal 2025, subject to customary closing conditions.

Why It Matters

This acquisition marks a significant strategic move for Campbell Soup, aiming to bolster its presence in higher-growth categories and diversify its brand portfolio beyond its traditional soup offerings.

Risk Assessment

Risk Level: medium — The acquisition involves a significant financial commitment and integration risks, and its success depends on achieving projected synergies and market acceptance.

Key Numbers

Key Players & Entities

FAQ

What is the primary strategic rationale behind Campbell Soup's acquisition of Sovos Brands?

The acquisition is intended to expand Campbell's U.S. snacking and frozen categories, leveraging Sovos Brands' portfolio which includes Rao's Homemade and Michael Angelo's.

What is the total value of the definitive agreement between Campbell Soup and Sovos Brands?

The definitive agreement is for approximately $2.7 billion.

When is the acquisition of Sovos Brands expected to close?

The transaction is anticipated to close in the second half of fiscal 2025, subject to customary closing conditions.

Which key brands are included in the acquisition from Sovos Brands?

Key brands from Sovos Brands include Rao's Homemade and Michael Angelo's.

What is Campbell Soup Company's ticker symbol?

Campbell Soup Company's ticker symbol is CPB.

From the Filing

0000016732-24-000127.txt : 20240910 0000016732-24-000127.hdr.sgml : 20240910 20240910084112 ACCESSION NUMBER: 0000016732-24-000127 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20240910 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20240910 DATE AS OF CHANGE: 20240910 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMPBELL SOUP CO CENTRAL INDEX KEY: 0000016732 STANDARD INDUSTRIAL CLASSIFICATION: FOOD & KINDRED PRODUCTS [2000] ORGANIZATION NAME: 04 Manufacturing IRS NUMBER: 210419870 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0730 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03822 FILM NUMBER: 241288811 BUSINESS ADDRESS: STREET 1: CAMPBELL PL CITY: CAMDEN STATE: NJ ZIP: 08103 BUSINESS PHONE: 8563424800 MAIL ADDRESS: STREET 1: CAMPBELL PL CITY: CAMDEN STATE: NJ ZIP: 08103 8-K 1 cpb-20240910.htm 8-K cpb-20240910 0000016732 false 0000016732 2024-09-10 2024-09-10 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): September 10, 2024 CAMPBELL SOUP CO MPANY (Exact name of registrant as specified in its charter) New Jersey 1-3822 21-0419870 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) One Campbell Place Camden , New Jersey 08103 -1799 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: ( 856 )  342-4800 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-(c)) Securities registered pursuant to Section 12(b) of the Act : Title of each class Trading Symbol(s) Name of each exchange on which registered Capital Stock, par value $.0375 CPB The Nasdaq Stock Market LLC Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Item 7.01 – Regulation FD Disclosure Campbell Soup Company will host its previously announced Investor Day today, September 10, 2024 at 9:00 a.m. ET at the Nasdaq MarketSite in New York City. A live audio webcast of the presentation will be available at https://investor.campbellsoupcompany.com under Events & Presentations. An archive of the webcast and the presentation slides will also be available on our website following the webcast. The information in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly au

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