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Campbell Soup Co.’s $2.7 billion acquisition of Sovos Brands Inc. – the Colorado-based parent of premium Italian sauce brand Rao’s – is expected to close by mid-March after the companies provided certification of compliance to the United States Federal Trade Commission.

The certification triggers a 30-day waiting period, set to expire March 11, after which the sale can be finalized. Subject to customary closing conditions, the transaction is due to close within days of March, the Camden-headquartered soup and snack giant said in a Feb. 13 announcement.

Originally, the deal was expected to wrap up by December 2023. The anticipated completion was pushed to mid-2024 after the FTC sought more information last fall about the proposed merger. At the time, Campbell said a second request for information “is a common feature of the regulatory review for transactions of this type under the Hart-Scott-Rodino Antitrust Improvement Act” and that it “will continue to engage with the FTC on their review.”

Campbell revealed plans to purchase Sovos in August 2023 and fold it into the meals and beverage division. The target’s portfolio also includes Michael Angelo’s frozen entrees and Noosa yogurt.

Founded in 2017, Sovos sells a range of premium products across North America, including pasta sauces, dry pasta, soups, frozen meals and yogurts.

Secret sauce

However, the flagship, Rao’s, represents a big chunk of net sales, according to Sovos. In 2022, the company reported the brand accounted for 69% of its $837 million in net sales.

Campbell believes bringing Rao’s into its sauce lineup, which currently consists of lower-priced Prego as well as Swanson broths, will enable it to deliver on the strategic goal of building a $1 billion sauce business by entering the “ultra-distinctive pasta sauce” space. 

“We’re excited to be one step closer to completing the acquisition and welcoming the talented Sovos Brands employees to Campbell’s team,” Campbell’s President and Chief Executive Officer Mark Clouse said in a Feb. 13 statement.

“The Sovos Brands portfolio strengthens our Meals & Beverages division, and paired with our fast-growing Snacks division, will create one of the best portfolios in the industry and make Campbell one of the most dependable, growth-oriented names in food,” he said.

Commented Sovos founder and CEO Todd Lachman, “We are delighted to reach this critically important milestone in the completion of the acquisition. We remain highly confident in Campbell’s ability to continue bringing our products to more households and further building on our track record as one of the fastest growing food companies of scale in the United States.”

Editor’s note: This story was updated at 1:30 p.m. ET Feb. 15, 2024, to clarify that it was the companies that provided the certification of compliance from the FTC, not vice versa.