Campbell Soup Company has completed the acquisition of Sovos Brands for $23.00 per share in cash. The transaction values Sovos at a Total Enterprise Value of approximately $2.7 billion. This strategic move adds the fast-growing Rao's brand to Campbell's portfolio, significantly upgrading its "Meals & Beverages" division. To manage these assets, Campbell has created a new "Distinctive Brands" unit. The company expects $50 million in annualized cost synergies and plans to divest the noosa yoghurt brand to focus on the Italian meals category.

SOVOS BRANDS, which reported an EBITDA margin of LOGIN in 2023, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 10.1x average currently observed in the AgriFood sector.

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