Sovos Brands, a portfolio company of Advent International, has completed its acquisition of Rao’s Specialty Foods, a maker of super premium pasta sauce. Advent formed Sovos Brands in February 2017 to acquire Michael Angelo’s Gourmet Foods, a producer of frozen Italian entrées. Rao’s Specialty Foods is Sovos’ second acquisition.
Rao’s Specialty Foods produces Rao’s Homemade, a leading brand of super premium pasta sauce. Rao’s Homemade contains no tomato blends, paste, water, starches, fillers, colors or added sugar. In addition to sauces, the company also sells dry pasta, dressings, marinades, olive oils, vinegars, tomatoes and fire-roasted red peppers. Rao’s Specialty Foods was founded in 1992 but traces its roots back to the opening of Rao’s Italian restaurant in New York in 1896. Today, the company is still headquartered in New York City (www.raos.com).
This transaction does not include Rao’s restaurants in New York, Las Vegas and Los Angeles, which will remain under the ownership of the Rao’s Restaurant Group. “The Rao’s brand will always have deep meaning for me and my family,” said Frank Pellegrino Jr., Principal of Rao’s Restaurant Group. “I am pleased to know that the Sovos team will honor and preserve our heritage as they lead the business into the future. I look forward to providing counsel to Sovos Brands to ensure that Rao’s Specialty Foods continues to grow and reach more customers with its high-quality super premium pasta sauce and complementary specialty goods.”
“Rao’s Specialty Foods has significant growth opportunities and we look forward to working alongside the company’s talented management team to accelerate its strong growth trajectory,” said Todd Lachman, President and CEO of Sovos Brands.
Sovos Brands was formed by Advent to acquire and build one-of-a-kind brands. Its portfolio includes Michael Angelo’s Gourmet Foods, a producer of frozen Italian entrées, and now Rao’s Specialty Foods. Sovos Brands is led by Todd Lachman, President and CEO; Larry Bodner, CFO; and Bill Johnson, Chairman. Mr. Lachman has a 25-year record 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 an operationally focused 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. He had a 31-year career at Heinz, where he grew top- and bottom-line results across multiple segments to transform the company into a global food industry leader. Sovos is headquartered in Berkeley, CA (www.sovosbrands.com).
“This acquisition is a testament to Sovos Brands’ commitment to establishing itself as a scale player in the consumer packaged goods industry,” said Jeff Case, a Managing Director at Advent International. “We are confident that Rao’s Specialty Foods will have a bright future as part of Sovos Brands and will benefit from its targeted growth strategy.”
Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. The firm is owned and operated by 45 partners and governed by a group of 14 managing partners. Advent has offices in 16 countries and employs 180 investment professionals across North America, Europe, Latin America and Asia. Founded in 1984 and headquartered in Boston, Advent has $42 billion in assets under management and has completed more than 300 buyout and private equity transactions (www.adventinternational.com).
Morgan Stanley & Co. was the financial advisor to Rao’s Specialty Foods on the transaction.
© 2017 Private Equity Professional | July 19, 2017
