Danone offers to buy kefir maker Lifeway Foods for $283M

Dairy giant Danone offered to buy the remaining stock it doesn’t already own in kefir products maker Lifeway Foods for about $283 million, or $25 a share, according to a regulatory filing. Danone, a long-time shareholder in Lifeway, currently owns 23.4% of its common shares.

Illinois-based Lifeway — which makes kefir, a dairy beverage similar to yogurt, and fermented probiotic products — reported record annual sales of $160 million in 2023, an increase of 13% from the prior year.

Danone said in a letter sent to Lifeway on Monday that the offer “represents a compelling proposition to [its] shareholders and reflects the fundamental potential of the Company.” The $25-a-share offer is a 59% premium to $15.74, Lifeway’s average price during the last three months. Lifeway’s stock closed Monday at $21.50 a share, giving it a market cap of $318 million.

The acquisition proposal comes as Lifeway has been embroiled in a bitter family dispute between the CEO and her relatives. A large shareholder has urged Lifeway to sell itself and accused the board and its CEO of “mis-managing the business.”

Lifeway acknowledged receiving Danone’s offer on Tuesday and said it would “carefully review and evaluate the proposal to determine the course of action.”

Food Dive