top of page

The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

FoodBev Media Logo
Access more as a FoodBev subscriber

Sign up to FoodBev and unlock more insights from the international food and beverage industry. Subscribers have access to webinars, newsletters, publications and more...

Domino September - Website Banner - GS1 - 300x250.gif
Danone proposes acquisition of Lifeway Foods for $283m
Siân Yates

Siân Yates

25 September 2024

Danone proposes acquisition of Lifeway Foods for $283m

Danone SA has made a non-binding proposal to acquire Lifeway Foods, a producer of kefir and probiotic products, for approximately $283 million (or $25 per share).


This offer comes as Lifeway Foods navigates internal leadership disputes and shareholder pressures to explore strategic alternatives.


Danone, which currently holds a 23.4% stake in Lifeway, has expressed confidence in the potential benefits of a merger, citing Lifeway's recent performance and market position.


The proposed acquisition price represents a 59% premium over Lifeway's average share price of $15.74 over the last three months.


In a letter addressed to Lifeway’s CEO Julie Smolyansky, Danone emphasised the advantages of combining operations, suggesting that such a move would enhance Lifeway’s growth opportunities by leveraging Danone’s extensive resources in innovation, distribution and marketing.


The letter highlighted Lifeway's consistent growth trajectory, reporting a 13% increase in annual sales to $160 million in 2023, alongside 19 consecutive quarters of year-over-year growth.


The kefir market has seen increased consumer interest, particularly during the pandemic, as more individuals prioritise gut health. Lifeway’s products, known for their probiotic benefits, have become increasingly popular among consumers seeking digestive health solutions.


However, Lifeway is currently facing significant challenges, including a public family dispute involving its leadership. Critics, including major shareholders, have accused the board and Smolyansky of mismanagement and have called for a sale of the company. This internal strife has raised concerns about Lifeway's governance and strategic direction.


Danone's proposal is part of its broader strategy to enhance its portfolio, particularly within the health-focused dairy segment. The company generated €27.6 billion in sales in 2023 and has positioned itself to capitalize on trends related to gut health and nutritional wellness.


The acquisition would require regulatory approval under US antitrust laws, but Danone does not foresee significant hurdles in securing these clearances. The transaction, if completed, could provide Lifeway shareholders with immediate liquidity and a clear exit strategy amid ongoing governance issues.


As of now, Lifeway has acknowledged receipt of Danone’s proposal and stated it will conduct a thorough review to determine the best course of action.


#Danone #LifewayFoods #kefir #probiotics #acquisition #guthealth

Related posts
Butterfly Equity to acquire The Duckhorn Portfolio for $1.95bn
Mergers & Acquisitions

Butterfly Equity to acquire The Duckhorn Portfolio for $1.95bn

PepsiCo to acquire Siete Foods for $1.2bn, expanding better-for-you portfolio
Mergers & Acquisitions

PepsiCo to acquire Siete Foods for $1.2bn, expanding better-for-you portfolio

DSM-Firmenich completes sale of MEG-3 Fish Oil business to KD Pharma
Mergers & Acquisitions

DSM-Firmenich completes sale of MEG-3 Fish Oil business to KD Pharma

Campari Group acquires minority stake in Capevin
Mergers & Acquisitions

Campari Group acquires minority stake in Capevin

CMA to investigate Carlsberg’s £3.3bn acquisition of Britvic
Beverage

CMA to investigate Carlsberg’s £3.3bn acquisition of Britvic

One Rock Capital Partners enhances snack portfolio with Europe Snacks acquisition
Mergers & Acquisitions

One Rock Capital Partners enhances snack portfolio with Europe Snacks acquisition

bottom of page