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Kefir and probiotic product specialist Lifeway Foods has rejected Danone’s latest offer of $27 per share to buy the remaining 76.7% stake in the business.

French dairy giant Danone currently owns 23.3% of Lifeway’s common shares. In September, the group made an initial offer to acquire all of the shares in the business that it does not own for a price of $25 per share – around $283 million. Lifeway revealed that it had turned down this proposal in early November.

Shortly after this, Lifeway confirmed it had received a revised takeover bid from Danone, this time putting forward $27 per share – approximately $307 million, representing a $24 million increase on the previous offer.

Following ‘careful and thorough’ consideration and consultation with its independent financial and legal advisors, Lifeway said its board came to the conclusion that Danone’s revised proposal ‘substantially undervalues’ Lifeway, and is not in the best interests of the company and its stakeholders.

Lifeway recently reported delivering its 20th consecutive quarter of growth, posting double digit year-over-year revenue growth and improved profit margins in the third quarter of 2024.

In a statement, the company said it remains focused on executing its strategic plan to bring kefir to more households while expanding into adjacent categories.

“The company plans to continue to build on its strong momentum to unlock additional shareholder value,” the statement reads. “The board and management are committed to acting in the best interests of all shareholders and ensuring that they are able to realise the full potential value of their investment.”

FoodBev has reached out to Danone for comment.

Top image: © Lifeway Foods

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