Italian Food Brands Company Sovos Files for IPO With Sales Jump
(Bloomberg) -- Sovos Brands Inc., the owner of the Italian cuisine brands Rao’s and Michael Angelo’s, filed for an initial public offering showing sales gains last year.
The company, backed by private equity firm Advent International, listed the size of the offering as $100 million, a placeholder that will change when terms of the share sale are set. Sovos, based in Louisville, Colorado, also owns the Noosa yogurt and Birch Benders pancake mix brands.
Locked-down consumers stockpiled ingredients for at-home meals, and many traded up to premium products at the start of the coronavirus pandemic. Sales of Sovos’s products spiked at the time and have continued to outperform competitors, according to the company’s filing Friday with the U.S. Securities and Exchange Commission.
The company became profitable in the fiscal year ended Dec. 26, with net income of almost $11 million on net sales of $560 million compared with a loss of $27 million on $388 million in sales a year earlier.
“We still have a long runway in each of these brands that supports our algorithm for sustainable long-term profitable growth,” founder and Chief Executive Officer Todd Lachman said in a letter to investors.
Funds affiliated with Advent currently own a majority of the parent company of Sovos, which will be a controlled company after the IPO, according to the filing. Bloomberg News reported in February that Advent was considering strategic options for the company.
The offering is being led by JPMorgan Chase & Co., Goldman Sachs Group Inc., Bank of America Corp. and Credit Suisse Group AG. The company’s shares are expected to trade on the Nasdaq Global Market under the symbol SOVO.
©2021 Bloomberg L.P.