Consumer Staples Company Campbell Soup Announces Acquisition of Sovos Brands

Campbell Soup CPB has announced an acquisition of Sovos Brands SOVO that is expected to be completed 2023-12.

Under the terms of the agreement, Campbell Soup has agreed to give Sovos Brands $2.70 billion in cash in exchange for SOVO stock.

About The Companies Involved

With a history that dates back around 150 years, Campbell Soup is now a leading manufacturer and marketer of branded convenience food products, most notably soup. The firm's product assortment includes well-known brands like Campbell's, Pace, Prego, Swanson, V8, and Pepperidge Farm.

Sovos Brands Inc is a food company in the United States. Its brands are Rao's, noosa, Birch Benders, and Michael Angelo's.

How An Acquisition Works

An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.

An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.