Lifeway Foods Rejects Danone’s Second Acquisition Offer

Nov. 25, 2024

Board of directors points to revenue and profit margin growth as proof that Danone’s offers have “substantially” undervalued the kefir manufacturer.

Andy Hanacek

Kefir and fermented probiotic foods processor Lifeway Foods Inc. announced it has rejected Danone North America PBC’s second, revised offer to acquire the remaining shares of Lifeway that it does not own for $27 per share.

Lifeway’s board of directors said in a statement that Danone’s newest proposal — which was up from $25 per share, adding about $23 million to the total initial offer — “substantially undervalues Lifeway and is not in the best interests of the company and its shareholders or other stakeholders.”

Lifeway recently posted its 20th consecutive quarter of growth, posting double-digit year-over-year revenue growth and improved profit margins for the third quarter of 2024 fiscal, the company said. Additionally, over the past five and three years through Sept. 23, 2024 (the last trading day before Danone’s first proposal to buy up the remaining shares, which was rejected earlier this month), Lifeway has delivered total shareholder returns of 788% and 270%, respectively.

About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.