Sovos Brands, a new California food and beverage company, plans to buy Rao’s Specialty Foods, producer of pasta sauce brand Rao’s Homemade.
Rao’s Specialty Foods will mark the second acquisition in less than six months for Sovos. In January, the company purchased Michael Angelo’s Gourmet Foods, a producer of frozen Italian entrées.
“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,” said Todd Lachman, president and CEO of Sovos Brands. “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.”
Spearheading the acquisition and value creation initiatives at Sovos Brands is a team headed by Lachman, CFO Larry Bodner and Chairman Bill Johnson.
Lachman has a 25-year record of delivering growth and value creation as a senior executive at consumer products companies, including Mars, Del Monte Foods, H.J. Heinz and Procter & Gamble. Bodner has more than 25 years of experience as a financial executive at companies like Big Heart Pet Brands, Del Monte Foods, Walt Disney and Procter & Gamble. Johnson formerly was chairman, CEO and president of H.J. Heinz, where he had 31-year career transforming the company into a global food industry leader.
“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 private equity firm Advent International. “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 does not include the Rao’s restaurants in New York, Las Vegas and Los Angeles, which will remain under current ownership.
