(AOF) – American food multinational Campbell Soup has reached an agreement to acquire Sovos Brands, Inc. for $23 per share in cash, representing a total enterprise value of approximately $2.7 billion . A food company, Sovos Brands achieved adjusted annual net sales of $8.37 billion in 2022. This group offers a variety of high-end products: pasta sauces, soups, frozen entrees, frozen pizzas and yogurts. under the Rao’s, Michael Angelo’s and Noosa brands.
Completion of the transaction, expected by the end of December 2023, is subject to Sovos Brands shareholder approval and customary closing conditions, including regulatory approvals.
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Find out more about the Agrifood sector
Soaring energy prices and a call for help
In the past, energy represented a fixed cost of 3% of turnover. This year, this percentage rises to 5% or even 7% for VSEs-SMEs, according to Ania (National Association of Food Industries). Professionals are very worried because until the end of 2022 they generally benefit from coverage to cushion these increases. However, they have not been renewed for 2023 and after. Consequently, 25 of the main inter-professional organizations (Intercereals, Inaporc, Semae, etc.) are calling on the State for help in the face of the erosion of their margins and their capacity to investment.
The State has proposed several devices, including an “electricity damper”, which are deemed insufficient. The organizations also deplore the failure of European negotiations to achieve a tariff shield to avoid distortions of competition. Agriculture and agri-food require a maximum ceiling price of €180/MWh, while many companies buy at prices above €500/MWh on the French market.