Lifeway Foods, Inc., a U.S. supplier of kefir and fermented probiotic products, has rejected a second unsolicited, non-binding proposal from Danone North America PBC to acquire all outstanding shares of Lifeway’s common stock it does not already own for $27 per share in cash.
According to the Schedule 13D amendment with the U.S. Securities and Exchange Commission disclosing the revised proposal, Danone owns approximately 23.3% of Lifeway's outstanding common stock.
On Nov. 5, Lifeway announced that its Board of Directors had rejected Danone's initial unsolicited, non-binding proposal to acquire all the shares of Lifeway that it does not already own for $25 per share because the board determined that the initial proposal undervalued Lifeway and was not in the best interests of the company, its shareholders and other stakeholders. Danone returned with its proposal of $27 per share on Nov. 15.
Lifeway says it remains focused on executing its strategic plan to bring kefir to more households while expanding into adjacent categories. The company recently delivered its 20th consecutive quarter of growth, posting double-digit year-over-year revenue growth and improved profit margins in the third quarter of 2024. Over the past five and three years, the company has delivered total shareholder returns of 788% and 270%, respectively, (as measured through Sept. 23, the last full trading day before Danone's initial unsolicited proposal was publicly disclosed).