Sovos prices IPO, sets unicorn valuation

LOUISVILLE — Sovos Brands Inc., a formerly California-based food-brand company that recently planted its headquarters flag in Louisville, is going public with an initial stock offering that values the firm at more than $1.5 billion.

The company is seeking to raise more than $350 million and expects its IPO to be priced at $14 to $16 per share.

Proceeds will be used to repay outstanding borrowings under its credit facilities and for general corporate purposes, Sovos said in a U.S. Securities and Exchange Commission filing.

JPMorgan Chase & Co. (NYSE: JPM) and Goldman Sachs Group Inc. (NYSE:GS) are acting as joint lead book-running managers for the offering. 

Sovos, founded in 2017, is seeking inclusion on the Nasdaq exchange and plans to use the ticker symbol SOVO.

The company made headlines locally in 2018 when it bought Bellvue-based Noosa Yoghurt LLC and again in 2020 when it absorbed Denver waffle mix maker Birch Benders LLC.

Since those acquisitions, the company has relocated its headquarters to Louisville, according to documents filed with the U.S. Securities and Exchange Commission and the Colorado Secretary of State.

In addition to Noosa and Birch Blenders, Sovos, a private-equity-backed company, owns Rao’s Homemade Sauce and Michael Angelo’s frozen italian meals. 

Sovos has manufacturing locations in Austin, Texas, and Bellvue.

“Today, Sovos is exactly what we set out to create — a high-growth, purposefully-built food platform and growth accelerator with a portfolio of ‘one-of-a-kind’ brands,” Sovos founder and CEO Todd Lachman wrote in a letter included last month in a regulatory filing. “All four of our brands — Rao’s, Michael Angelo’s, noosa and Birch Benders — are built with authenticity at their core and high-quality ingredients, providing food experiences that are genuine, delicious and unforgettable. And we still have a long runway in each of these brands that supports our algorithm for sustainable long-term profitable growth.”

Sovos plans to “pursue more acquisitions of disruptive growth brands,” the SEC filing said. 

If Sovos achieves its projected billion-dollar-plus valuation after the initial public offering, it will be the second Louisville company to reach that valuation milestone — known as unicorn status — in less than a month. 

JumpCloud Inc., a directory-as-a-service technology platform, this week closed a $159-million Series F round and is now valued at $2.56 billion.

Other Boulder County unicorns include biosciences company SomaLogic Inc., energy software startup Uplight Inc. and telecommunications infrastructure provider Zayo Group Holdings Inc.

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