US cooking sauces and frozen meals business Sovos Brands has set pricing for its IPO, suggesting it could raise around US$370m.

The Rao’s pasta sauce, Michael Angelo’s frozen meals and Noosa yogurt brand owner, set up in 2017 with the backing of private-equity firm Advent International, plans to issue 23.33 million shares priced at $14-16 each, it said in a filing with the US Securities and Exchange Commission.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

That implies a maximum threshold of $372.8m from the share offering as the business seeks a listing on the Nasdaq exchange in the US. JPMorgan and Goldman Sachs are among the underwriters for the offering.

Sovos Brands was formed by CEO Todd Lachman and chairman Bill Johnson, the former president and chief executive of H. J. Heinz (the ketchup giant that is now part of Kraft Heinz).

The company’s most recent acquisition came in the summer of 2020, when it snapped up Birch Benders, a US producer of pancake and waffle mixes.

In the S-1 form Sovos Brands filed with the SEC last month, it said it had generated net sales of US$560.1m in the 52 weeks to 26 December, up from $388m a year earlier. The business booked an operating income of $37.4m, versus an operating loss of $22.8m 12 months previously. It made a net income of $10.8m, against a net loss of $27.1m the year before.

Sovos Brands’ largest brand by sales is Rao’s, under which the company sells pasta sauces, pizza sauces, dry pastas, frozen entrées and soups.

In the documents lodged with the SEC, the company says “despite our success, we believe significant opportunities remain for additional growth”. The business points to Rao’s “household penetration”, which the company said stood at 9.6% in the 52 weeks to 13 June, compared to the – unnamed – number one and two brands in the sauce category, which had household penetration of “over 30%”.