Danone Mulls Lifeway Options After Withdrawing Takeover Interest

Bottles Of Lifeway kefir. Credit: PJ McDonnell/Shutterstock.com.

Danone has abandoned its pursuit of acquiring Lifeway Foods and is exploring its options for its finance successful nan US kefir maker.

Last month, Danone and Lifeway signed an NDA to let nan French elephantine to measurement up whether to make different bid for Lifeway aft having two offers turned down.

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According to an SEC filing yesterday (18 September), Danone has decided against a caller bid and is weighing alternatives that includes “selling each aliases part” of its astir 22.7% liking successful Lifeway.

In response, Lifeway issued a statement, affirming it remains “firmly committed to driving worth for Lifeway shareholders by executing our strategical scheme and continuing to research worth enhancing opportunities”.

The institution said it had group up a strategical reappraisal committee consisting of independent board to oversee nan process and engaged “extensively” with Danone.

The Activia marque proprietor initially projected acquiring Lifeway successful September 2024 for $25 per share, raising nan connection to $27 2 months later.

Lifeway rejected some bids, claiming they undervalued nan company.

Tensions escalated, pinch Danone filing a suit alleging Lifeway breached a shareholder agreement. Lifeway, successful turn, described Danone’s offers arsenic a “hostile takeover”.

Meanwhile, a long-running family conflict astatine Lifeway has intensified, pinch nan company’s chair and CEO, Julie Smolyansky, facing guidance from her mother and brother, Ludmila and Edward Smolyansky.

In July, nan mother-and-son duo, who are nan company’s largest shareholders, submitted a “definitive consent statement” to nan SEC, seeking to switch Lifeway’s board, including Julie, pinch nominees “focused connected restoring accountability, transparency and semipermanent shareholder value”.

Danone said it is now contemplating whether to support nan consent inducement to switch Lifeway’s full board.

Lifeway, chiefly known for kefir, besides produces cheeses and a ProBugs statement for children.

Its dairy products are distributed crossed nan US, Mexico, Ireland, South Africa, France and nan UAE.

In its connection yesterday (18 September), nan institution highlighted 22 consecutive quarters of growth, pointing to second-quarter nett income of $53.9m, up 18% year-over-year connected a comparable basis.

Over nan first 2 months of Q3, Lifeway saw a 20% maturation successful unaudited nett sales, totalling $39.1m, it added.