News
Danone bids $283m for US kefir manufacturer
The bid disclosed in a filing to the Securities and Exchange Commission (SEC) in the US on 23 September.
Valuing Lifeway Foods at $25 per share, the deal is worth around $283m given that Danone already owns a 23.4% stake in the business.
Danone said that the transaction would be wholly funded in cash and was not dependent on any financing requirements.
In a letter to Lifeway Foods CEO Julie Smolyansky, Danone deputy CEO Shane Grant said that a merger presented an “attractive opportunity” for the business to “achieve its full potential”.
“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,” added Grant.
The board of directors at Lifeway Foods will now review the proposal in consultation with independent outside advisors to determine its course of action.
Based in Illinois, the firm has recently been embroiled in an internal struggle after directors Ludmila and Edward Smolyansky called for much of its leadership to step aside.
Lifeway Foods’ drinkable and frozen kefir products are currently listed in the UK with Booths and Morrisons, while its full range is available across the US.
Food Manufacture has reached out to Danone for further comment.
In other news, Cheshire-based Roberts Bakery has announced the appointment of Julia Banton as its new managing director.
