Sovos Brands
Background
Advent International founded Sovos Brands in 2017 with a vision to build a differentiated food company by acquiring and scaling “one-of-a-kind” brands in the consumer-packaged goods (CPG) sector. Advent partnered with seasoned industry executives, including Todd Lachman (President and CEO), Larry Bodner (CFO), and Bill Johnson (Chairman), to execute this strategy.
Advent’s expertise in the retail, consumer, and leisure sectors—having invested over $13 billion in 80 companies globally—provided a strong foundation for this venture. Their goal was to create a scalable platform that combined Advent’s financial backing and deal-making capabilities with operational excellence to drive organic growth and value creation through acquisitions.
Craig Randall partnered with Todd Lachman at ground zero, before office space/employees or even a first platform deal was complete. The mission was to build out a robust, cross functional A team to realize on Advent’s thesis. The team included a VP of Marketing, VP Controller, VP General Manager, and VP of Supply Chain among others. These hires were foundational to integrating the transformative acquisitions to come, Michael Angelo’s Gourmet Foods and Rao’s Specialty Foods.
Exit: Sale to Campbell Soup Company
Advent’s final move with Sovos Brands was orchestrating its sale to Campbell Soup Company (renamed The Cambell’s Company as of November 2024). On August 7, 2023, Campbell agreed to acquire Sovos Brands for $23 per share in cash, representing a total enterprise value of $2.7 billion – a 92% increase from its 2021 IPO price.
The sale aligned with Campbell’s strategy to bolster its Meals & Beverages division with premium brands, particularly Rao’s, which Campbell viewed as a cornerstone for achieving a $1 billion sauces business.
Measurable Success
Financial Success: Advent turned an initial platform into a $2.7 billion enterprise within seven years, delivering a 21% compound annual growth rate (CAGR) in net sales from 2017 to 2023. The exit to Campbell provided a substantial return on investment.
Market Positioning: Sovos Brands became one of the fastest-growing food companies in the U.S., with Rao’s establishing itself as a category leader in premium sauces.
Strategic Legacy: The deal demonstrated Advent’s ability to identify, acquire, and scale niche brands into a cohesive, high-value platform – setting a blueprint for future CPG investments.
Advent’s journey with Sovos Brands exemplifies a private equity success story in the CPG space. By combining strategic acquisitions, operational expertise, and a clear exit strategy, Advent transformed a startup-like entity into a publicly traded company and ultimately a valuable acquisition target for a legacy food giant. A true buy and build success – from concept to $2.7 billion in enterprise value executed by industry leaders.