Sovos Brands (NASDAQ:SOVO) stock is rising higher on Monday following news that Campbell Soup (NYSE:CPB) is acquiring the Italian sauces company.
Campbell Soup is going to acquire Sovos Brands in a $2.7 billion deal. This has it valuing shares of SOVO stock at $23 per share, which it will pay in cash. It also represents a 27.6% premium to the stock’s closing price on Friday.
Campbell Soup is buying up Sovos Brands as part of its plan to create a $1 billion sauce business. The company also notes that the acquisition will be accretive to its diluted earnings per share starting in the second year after the merger closes.
Todd Lachman, founder, president, and CEO of Sovos Brands, said this about the Campbell Soup deal.
“This transaction is expected to create substantial value for our shareholders, resulting in a 92% increase from our 2021 IPO price. As one of the most trusted and respected food companies in North America, I’m confident in Campbell’s ability to continue bringing our products to more households and further building on our track record of growth and success for years to come.”
How This Affects SOVO Stock
Investors are excited about today’s news and that has shares of SOVO stock seeing heavy trading today. This comes as some 3.7 million shares of the company’s stock change hands. For the record, its daily average trading volume is closer to 611,000 shares.
SOVO stock is up 24.9% as of Monday morning.
Investors seeking out more of the most recent stock market news are going to want to keep reading!
We have deep dives into all of the biggest stock market stories worth reading about on Monday! A few examples include what’s going on with shares of Bionano Genomics (NASDAQ:BNGO), Sage Therapeutics (NASDAQ:SAGE), and Yellow (NASDAQ:YELL) stock today. All of that news is available at the following links!
More Stock Market News For Monday
- BNGO Stock Alert: Bionano Just Reverse Split Its Stock
- Why Is Sage Therapeutics (SAGE) Stock Down 48% Today?
- Why Is Yellow (YELL) Stock Down 42% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
