Latest Update on Lifeway Foods Acquisition Proposal:
- The board of Lifeway Foods has responded to Danone’s acquisition proposal of $27 per share, stating that it believes the offer “substantially undervalues” the company. However, Lifeway is open to a potential sale at the right price.
- Despite rejecting Danone’s offer, Lifeway’s board remains confident in the company’s ability to deliver superior value to its shareholders compared to the proposed acquisition. Danone has not provided any further comments on the matter.
- Danone, which currently owns 23.3% of Lifeway’s common shares, increased its bid to acquire the remaining stock on November 15. This comes after an initial offer of $25 per share in September.
Insights into Lifeway Foods’ Position:
Lifeway’s willingness to consider offers from Danone or other potential buyers is seen as a strategic move to potentially secure a higher bid. The company’s latest press release highlights its recent achievements and optimistic outlook for the future.
The board emphasized Lifeway’s consistent revenue growth over the past 20 fiscal quarters, with sales increasing from $94 million in 2019 to $160 million last year. Lifeway also pointed out its strong performance in the dairy and food industry, particularly in the areas of gut health, protein, and probiotics.
Regarding Danone’s $27 per share offer, Lifeway believes that the bid undervalues the company, considering potential synergies and operational efficiencies that could benefit a strategic acquirer. The board is confident in Lifeway’s long-term growth potential and margin expansion.
Meanwhile, Lifeway has faced internal challenges due to a family dispute involving CEO Julie Smolyansky and her relatives. The CEO’s brother and mother have called for an independent committee to evaluate acquisition proposals, citing personal conflicts that may impact the CEO’s decision-making process.