Home Food News Lifeway rejects Danone’s second takeover offer

Lifeway rejects Danone’s second takeover offer

by amazonskylers

Lifeway Foods has turned down a higher bid from Danone, stating that the latest offer “significantly undervalues” the company.

Last week, dairy giant Danone increased its offer to acquire the remaining shares of Lifeway to approximately $307 million, or $27 per share, up from an initial proposal of $283 million, or $25 per share, in September. Danone currently holds 23.3% of Lifeway’s common shares.

Lifeway stated, “The Company remains focused on executing its strategic plan to bring kefir to more households while also expanding into adjacent categories.” The company recently unveiled its newest functional beverage innovation: Probiotic Smoothie + Collagen made with kefir cultures.

Despite Danone’s increased offer, Lifeway emphasized its recent success, with 20 consecutive quarters of growth and a double-digit year-over-year revenue increase. As a major player in the healthy products market, Lifeway would complement Danone’s portfolio of better-for-you offerings, which includes brands like Activia and Too Good yogurts.

Danone did not comment on Lifeway’s rejection of its revised proposal. In a letter to Lifeway, Danone stated that the $27 offer is a compelling proposition to shareholders and highlights the company’s potential. Danone also mentioned that acquiring Lifeway would eliminate costs associated with being a public company and enhance value through increased innovation, distribution, and marketing support.

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