USA: Danone proposes full acquisition of Lifeway Foods

FMCG giant Danone has made a non-binding offer to acquire Lifeway Foods, a manufacturer of kefir and probiotic products, for $283 million ($25 per share).

Lifeway Foods is a leading provider of kefir drinks and desserts, with distribution in the United States, Mexico, Ireland, South Africa and France.

Danone, which already holds 23.4% of Lifeway’s common stock, said the proposal aligned with its wider strategy to enhance its portfolio within the health-focused dairy segment.

In a letter addressed to Lifeway’s CEO Julie Smolyansky, Danone North America president and chief executive officer Shane Grant said: “In recognizing the solid performance of the company over the last few years, we believe Lifeway has an attractive opportunity to achieve its full potential through a combination with Danone, removing the constraints and additional resources required for a publicly listed company of Lifeway’s size. We are confident that Danone’s operations and dedicated resources would unlock significant opportunities and value for Lifeway, notably by providing further innovation, distribution and marketing support”.

Source: Lifeway / FoodBev / Dairy Industries