Sovos Brands, a new US-based food and beverage company formed by Advent International, has agreed to buy local pasta sauce maker Rao’s Specialty Foods.
The acquisition is the second made by Sovos Brands, set up earlier this year, with Advent International announcing in February it aimed to grow the business into a “scale player” in the US consumer goods sector.
Rao’s Specialty Foods, which manufactures the Rao’s Homemade brand, was established in 1992. Sovos Brands said the business is a “super-premium” brand with a focus on the “highest quality ingredients, clean label and superior taste profile”.
“Rao’s Specialty Foods is a great addition to the portfolio we are creating of one-of-a-kind brands in the food and beverage sector,” Todd Lachman, the president and CEO of Sovos Brands, said. “Its unwavering commitment to authentic, delicious-tasting products using only the highest quality ingredients aligns with our strategy of partnering with unique brands that are in demand with discerning consumers. Working alongside the company’s talented management team, we see numerous opportunities to grow the Rao’s Homemade brand and expand Rao’s Specialty Foods into adjacent food categories.”
Eric Skae, CEO of Rao’s Specialty Foods, agreed the deal will boost Rao’s growth prospects. “With the resources and expertise of Sovos and Advent, we will be in an even stronger position to pursue the significant growth opportunities ahead of us. We look forward to expanding our product offering and introducing more consumers to the authentic taste of our pasta sauces and other specialty foods.”
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“Sovos Brands is making great progress on its strategy to establish a scale player in the consumer packaged goods industry,” said Jeff Case, a managing director at Advent. “We continue to work with the Sovos team to support and grow its brands and acquire other leading branded players offering delicious food that meets today’s consumer demand for high-quality, clean ingredients.”
The transaction is expected to be completed during the third quarter of this year. Financial terms were not disclosed. The transaction does not include the Rao’s restaurants in New York, Las Vegas and Los Angeles, which will remain under current ownership.