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

By: Trademagazin editor Date: 2024. 09. 26. 09:11

The proposal to buy the company for $25 a share comes as Lifeway’s leadership remains embroiled in a bitter family dispute and the manufacturer faces shareholder calls to sell itself.

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