CAMDEN, NJ. — The Campbell Soup Co. has completed its acquisition of Sovos Brands, Inc. for $23 per share in an all-cash transaction valued at about $2.7 billion.

The Sovos Brands portfolio includes pasta sauces, dry pasta, soups, frozen entrees, frozen pizza and yogurts under the brands Rao’s, Michael Angelo’s and noosa. Sovos Brands had net sales of $1 billion in the year ended Dec. 30, 2023, behind an organic net sales increase of 25% year-over-year. Rao’s organic net sales increased 37%, generating $775 million in annual revenue.

“This important milestone in Campbell’s history adds several market-leading and scaled premium brands to our company,” said Mark Clouse, president and chief executive officer of Camden-based Campbell Soup. “It accelerates Campbell’s successful strategy and provides a substantial runway for sustained profitable growth. An enhanced Meals & Beverages division paired with our differentiated Snacks division creates an advantaged portfolio that makes Campbell one of the most dependable and growth-oriented large capitalization value names in food.”

Campbell Soup has set up a new business unit, called Distinctive Brands, within its Meals & Beverages division. The new unit will feature Pacific Foods, Rao’s, Michael Angelo’s and noosa. Campbell Soup will evaluate alternatives for noosa, a brand of yogurt. The other three business units within Meals & Beverages are US Retail, Canada and Foodservice.

Risa Cretella, senior vice president and general manager, will lead Distinctive Brands. She most recently was chief sales officer at Sovos Brands. She will report to Mick Beekhuizen, Campbell Soup’s executive vice president and president, Meals & Beverages.

Campbell Soup expects the transaction to be accretive to adjusted diluted earnings per share by the second year it owns Sovos, excluding one-time integration expenses and costs to achieve synergies. Annualized cost synergies are expected to reach $50 million over the next two years.