BERKELEY, Calif. and
NEW YORK, June 8, 2017 /PRNewswire/ -- Sovos Brands, a new
food and beverage company formed by Advent International, today
announced that it has agreed to acquire Rao's Specialty Foods Inc.,
the producer of Rao's Homemade, the leading brand of super premium
pasta sauce made with only the highest quality natural ingredients.
The transaction is expected to be completed during the third
quarter of this year. Financial terms were not disclosed.
Rao's Specialty Foods is the second acquisition in less than six
months for Sovos, which seeks to acquire and build value in
one-of-a-kind food and beverage brands. In January 2017, the company purchased Michael Angelo's Gourmet Foods, a leading
producer of premium, authentic frozen Italian entrées.
Headquartered in Berkeley, CA, and
led by seasoned consumer packaged goods executives, Sovos focuses
on high-quality brands in on-trend categories with the potential to
accelerate growth by investing in distribution, marketing,
production and product innovation.
Rao's Homemade is an iconic brand with a storied heritage dating
back to the opening of Rao's Italian restaurant in East Harlem,
New York, in 1896. Established in
1992, Rao's Specialty Foods produces super premium pasta sauce,
known for its commitment to the highest quality ingredients, clean
label and superior taste profile. Rao's Homemade contains no tomato
blends, paste, water, starches, fillers, colors or added sugar like
many of the other leading brands. In addition to sauces, the
company offers a selection of premium dry pasta, dressings,
marinades, olive oils, vinegars, tomatoes and fire-roasted red
peppers.
"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."
"We are thrilled to join the Sovos Brands family," said
Eric Skae, Chief Executive Officer
of Rao's Specialty Foods. "Since 1992 we have been the leading
brand in the premium pasta sauce category by a wide margin, and as
we enter our 25th year, we are committed to maintaining
our top position in the space. 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."
Jim Morano, President of Rao's
Specialty Foods, added, "As we continue to grow the business, we
will remain true to our co-founder Frank
Pellegrino Sr.'s vision for our recipes, which as Frank
said, is 'to use the fewest number of ingredients and take the
fewest number of steps. Good cooking is simple. It's called
'pulito' – Italian for 'pure, clean.' That's the right way to cook.
That's what we do. That's how we do it.'"
Spearheading the acquisition and value creation initiatives at
Sovos Brands is a team headed by Mr. Lachman, Larry Bodner, CFO, and Bill Johnson, Chairman. Mr. Lachman has a
25-year record of delivering growth and value creation as a senior
executive at major consumer products companies, including Mars, Del
Monte Foods, H.J. Heinz and Procter
& Gamble. Mr. Bodner has over 25 years of experience as a
performance-driven financial executive at companies including Big
Heart Pet Brands, Del Monte Foods, Walt
Disney and Procter & Gamble. Mr. Johnson was formerly
chairman, CEO and president of H.J.
Heinz, where he had a distinguished 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 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 iconic Rao's restaurants in
New York, Las Vegas and Los
Angeles, which will remain under current ownership.
Advent International has significant investment experience in
the retail, consumer and leisure industry. Over the past 27 years,
the firm has invested more than $9
billion in 71 companies in the sector across 21 countries
worldwide. In addition to Sovos Brands, recent North American
investments include Noosa Yoghurt, lululemon athletica (NASDAQ:
LULU), The Coffee Bean & Tea
Leaf, Serta Simmons Bedding,
Party City (NYSE: PRTY), Bojangles' (NASDAQ: BOJA) and Five Below
(NASDAQ: FIVE).
Morgan Stanley & Co. LLC is serving as exclusive financial
advisor and Morrison & Foerster LLP is serving as legal advisor
to Rao's Specialty Foods on the transaction. Weil, Gotshal &
Manges is serving as legal advisor to Sovos Brands and Advent
International.
ABOUT RAO'S SPECIALTY FOODS
Founded in 1992, Rao's
Specialty Foods is a leading producer of super premium pasta sauce,
with Rao's Homemade ranking as the leading brand in the super
premium pasta sauce segment. In addition to sauces, Rao's Specialty
Foods offers a selection of premium dry pasta, dressings,
marinades, olive oils, vinegars, tomatoes and fire-roasted red
peppers. Rao's Specialty Foods provides customers with high-quality
products made with homemade ingredients, including 100% Italian
tomatoes. Find out more about Rao's Specialty Foods at
www.raos.com.
ABOUT SOVOS BRANDS
Sovos Brands is a new kind of food
and beverage company with a mission to acquire and build
one-of-a-kind brands. The first brand in its portfolio,
Michael Angelo's Gourmet Foods, is a
leading producer of premium, authentic frozen Italian entrées.
Sovos Brands has the soul of a startup, the experience of an
industry leader and the financial backing of Advent International,
one of the world's largest private equity firms. The company has a
one-of-a-kind approach to brands, business and people—in fact, the
only thing that's old school about the business is the name,
inspired by the old Latin term sovos, which means unique or
one of a kind. This one-of-a- kind vision leads the company's focus
on people and brands, working to ensure that both can really
thrive. Find out more about Sovos Brands at www.sovosbrands.com and
Michael Angelo's Gourmet Foods at
www.michaelangelos.com.
About Advent International
Founded in 1984, Advent
International is one of the largest and most experienced global
private equity investors. The firm has invested in 325 private
equity transactions in 40 countries and as of December 31, 2016, had $41
billion in assets under management. With offices on four
continents, Advent has established a globally integrated team of
over 180 investment professionals across North America, Europe, Latin
America and Asia. The firm
focuses on investments in five core sectors, including business and
financial services; healthcare; industrial; retail, consumer and
leisure; and technology, media and telecom. After more than 30
years dedicated to international investing, Advent remains
committed to partnering with management teams to deliver sustained
revenue and earnings growth for its portfolio companies. For more
information, visit www.adventinternational.com.
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SOURCE Advent International