Campbell Soup Company (NYSE: CPB) has entered an agreement to acquire Sovos Brands, Inc. (Nasdaq: SOVO), whose premium portfolio of brands includes Rao’s, Michael Angelo’s and noosa yogurt.

Sovos Brands had annual adjusted net sales of $837 million in 2022 with compounded annual organic net sales growth of 28% from 2019 to 2022.

The flagship Rao’s brand represented about 69% of Sovos Brands adjusted net sales in fiscal 2022, growing 34.9% compared to the prior year.

“We’re thrilled to add the most compelling growth story in the food industry and welcome the talented employees who have built a nearly $1 billion portfolio,” said Campbell’s President and CEO Mark Clouse. “This acquisition fits perfectly with and accelerates our strategy of focusing on one geography, two divisions and select key categories that we know well. Our focused strategy has enabled us to deliver strong results over the last five years, enhance our brands and capabilities, and generate strong cash flow to lower debt. With all this progress, I am confident in our readiness to execute and integrate this important acquisition. The Sovos Brands portfolio strengthens and diversifies our Meals & Beverages division and paired with our faster-growing and differentiated Snacks division, makes Campbell one of the most dependable, growth-oriented names in food.”

Todd Lachman, founder, president and CEO of Sovos Brands, Inc. commented: “We have built a one-of-a-kind, high growth food company focused on taste-led products across a portfolio of premium brands, anchored by the Rao’s brand … This transaction is expected to create substantial value for our shareholders, resulting in a 92% increase from our 2021 IPO price. As one of the most trusted and respected food companies in North America, I’m confident in Campbell’s ability to continue bringing our products to more households and further building on our track record of growth and success for years to come.”