Lifeway Rejects Danone Offer
Date
11/23/2024 6:41:54 AM
(MENAFN- Baystreet)
Lifeway Foods, Inc. (NASDAQ: LWAY) slid shares Wednesday. The company, leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, today announced that its Board of Directors has rejected the revised unsolicited proposal made on November 15, by Danone North America PBC to acquire all the shares of Lifeway that it does not already own for $27.00 per share.
“After careful and thorough consideration,” read this morning's news release,“conducted in consultation with its independent financial and legal advisors, the Board determined that Danone's revised proposal substantially undervalues Lifeway and is not in the best interests of the Company and its shareholders or other stakeholders.”
Lifeway remains focused on executing its strategic plan to bring kefir to more households while also 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 September 23, 2024, the last full trading day before Danone's initial unsolicited proposal was publicly disclosed) far outperforming other high growth food and beverage peers as well as the S&P 500.
The Company plans to continue to build on its strong momentum to unlock additional shareholder value. The Board and management are committed to acting in the best interests of all shareholders and ensuring that they are able to realize the full potential value of their investment.
LWAY shares dropped 89 cents, or 3.5%, to $24.45.
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