Danone plans to acquire Lifeway Foods for approximately $283 million, offering a 59% premium over its recent share price. This move aims to integrate Lifeway’s probiotic products into Danone’s health-focused portfolio, addressing Lifeway’s internal challenges while bolstering Danone’s market presence.
Danone, a leading multinational food-products corporation based in France, has made a significant move to acquire the remaining shares of Lifeway Foods, a prominent maker of kefir products headquartered in Morton Grove, Illinois, for approximately $283 million, equating to $25 per share. This proposal represents a 59% premium over Lifeway’s recent average share price, underscoring Danone’s long-term commitment to the company, where it currently holds a 23.4% stake.
Lifeway Foods has gained recognition for its kefir and probiotic offerings, achieving remarkable growth with record sales of $160 million in 2023. The company is renowned for its dedication to producing high-quality, nutrient-rich dairy products, catering to the growing demand for functional foods that promote digestive health. Lifeway’s product line includes a variety of flavored and traditional kefir options, as well as smoothies and other probiotic beverages.
However, the company is currently grappling with internal challenges, including a family dispute over leadership and increasing calls from shareholders advocating for a sale. These issues have raised concerns about the company’s strategic direction and operational stability, making the acquisition proposal particularly timely.
Danone, which has maintained its shareholder position for over two decades, sees a strategic opportunity to integrate Lifeway into its portfolio of health-focused dairy brands, including Activia and Oikos. The acquisition could provide Lifeway with the necessary resources and support to enhance its market presence and navigate its current challenges.
As Lifeway reviews Danone’s proposal, the outcome could significantly impact both companies. A successful acquisition would not only bolster Danone’s position in the health-focused dairy market but also provide Lifeway with the stability and expertise needed to drive future growth and innovation in the competitive landscape of probiotic foods.
