Private-equity firm Advent International is reportedly considering an initial public offering for Sovos Brands, its US food business.
News agency Bloomberg, quoting unnamed sources, said Advent is working with an adviser to weigh alternatives for California-based Sovos Brands, which owns Rao’s pasta sauce, Michael Angelo’s frozen meals and Noosa yogurt. It said these alternatives could also include a sale of the business.
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Bloomberg suggested the business could fetch US$2bn-$3bn in a transaction.
The company was set up in 2016 by Boston, Massachusetts-based Advent to become a “scale player” in the US food industry.
It has done this largely through acquisitions. In September, on the back of buying local bakery business Birch Benders, Sovos Brands said it was on the look-out for more deals.
The group posted revenue of about $800m in 2020 and is on track for 30% annual growth, according to Bloomberg‘s sources.
In September, Jason Vieth, a senior vice president at Sovos Brands, told just-food the business had done exceptionally well during the Covid period as consumers were increasingly eating at home.
Advent declined to comment about the IPO and sale speculation when approached by Bloomberg.
just-food has contacted Sovos Brands for a response to this story but a representative of the company said it did not have a comment to make.
