Sovoss Noosa yogurt brand

Sovos's Noosa yogurt brand

Private-equity firm Advent International is reportedly considering an initial public offering for Sovos Brands, its US food business.

News agency Bloomberg, quoting unnamed sources, said Advent is working with an adviser to weigh alternatives for California-based Sovos, which owns brands such as Rao's pasta sauce, Michael Angelo's frozen meals and Noosa yogurt. It said these alternatives could also include a sale of the business.

Bloomberg suggested Sovos could fetch US$2bn-$3bn in a transaction.

Sovos was set up in 2016 by Boston, Massachusetts-based Advent to become a "scale player" in the US food industry.

It has done this largely through acquisitions. In September, on the back of buying local bakery business Birch Benders, Savos said it was on the look-out for more deals.

Sovos posted revenue of about $800m in 2020 and is on track for 30% annual growth, according to Bloomberg's sources.

In September, Sovos senior vice president Jason Vieth told just-food the business had done exceptionally well during the Covid period as consumers were increasingly eating at home.

Advent declined to comment about the Sovos IPO and sale speculation when approached by Bloomberg.

just-food has contacted Sovos for a response to this story but a representative of the company said it did not have a comment to make.