Jars of Rao’s sauce are displayed at a food store in New York on Tuesday, Aug. 8, 2023. Campbell Soup is set to buy Sovos Brands, the maker of Rao’s pasta sauces. (AP Photo/Peter Morgan)

NEW YORK (AP) — Campbell Soup is set to buy Sovos Brands, the maker of Rao’s pasta sauces. In a Monday announcement, the two companies said they had entered an agreement for Campbell’s to acquire Sovos for $23 per share in cash — reflecting a total value of about $2.7 billion. The transaction will help diversify and strengthen Campbell’s Meals & Beverages division, Campbell’s President and CEO Mark Clouse said in a statement. Campbell intends to finance the Sovos acquisition with the issuance of new debt. The transaction’s closing is expected for December, subject to Sovos stockholder and regulatory approval, as well as other closing conditions.