LIFEWAY FOODS REJECTS REVISED UNSOLICITED PROPOSAL FROM DANONE
Lifeway Foods (NASDAQ: LWAY) has rejected Danone North America's revised unsolicited proposal to acquire all remaining shares for $27.00 per share. The Board determined the offer substantially undervalues the company. Lifeway recently achieved its 20th consecutive quarter of growth, with double-digit year-over-year revenue growth and improved profit margins in Q3 2024. The company has delivered total shareholder returns of 788% and 270% over five and three years respectively, outperforming peers and the S&P 500. Management remains focused on executing its strategic plan to expand kefir market presence and enter adjacent categories.
Lifeway Foods (NASDAQ: LWAY) ha rifiutato la proposta rivista e non richiesta di Danone North America di acquisire tutte le azioni rimanenti a 27,00 dollari per azione. Il Consiglio di Amministrazione ha determinato che l'offerta svaluta sostanzialmente l'azienda. Lifeway ha recentemente raggiunto il 20° trimestre consecutivo di crescita, con una crescita del fatturato anno su anno a due cifre e margini di profitto migliorati nel Q3 2024. L'azienda ha fornito rendimenti totali per gli azionisti del 788% e del 270% rispettivamente su cinque e tre anni, superando i concorrenti e l'S&P 500. La direzione rimane concentrata sull'esecuzione del suo piano strategico per espandere la presenza nel mercato del kefir e entrare in categorie adiacenti.
Lifeway Foods (NASDAQ: LWAY) ha rechazado la propuesta revisada y no solicitada de Danone North America para adquirir todas las acciones restantes a 27,00 dólares por acción. La Junta determinó que la oferta subestima sustancialmente a la compañía. Lifeway ha logrado recientemente su 20º trimestre consecutivo de crecimiento, con un crecimiento de ingresos interanual de dos dígitos y márgenes de beneficio mejorados en el Q3 2024. La empresa ha proporcionado rendimientos totales para los accionistas del 788% y del 270% en cinco y tres años respectivamente, superando a sus pares y al S&P 500. La dirección sigue centrada en ejecutar su plan estratégico para expandir la presencia en el mercado del kéfir y entrar en categorías adyacentes.
라이프웨이 푸드 (NASDAQ: LWAY)는 다논 북미의 수정된 비수의적 인수 제안을 주당 27.00달러에 모든 남은 주식을 인수하겠다는 제안을 거부했습니다. 이사회는 이 제안이 회사를 실제보다 저평가한다고 판단했습니다. 라이프웨이는 최근 20분기 연속 성장을 달성했으며, 2024년 3분기에는 두 자릿수 연간 매출 성장과 향상된 이익률을 기록했습니다. 이 회사는 5년 및 3년에 걸쳐 각각 788% 및 270%의 총 주주 수익률을 달성하며 동종업체 및 S&P 500을 초과 성과를 냈습니다. 경영진은 케피르 시장의 존재감을 확대하고 인접 카테고리에 진입하기 위한 전략 계획을 실행하는 데 집중하고 있습니다.
Lifeway Foods (NASDAQ: LWAY) a rejeté la proposition révisée et non sollicitée de Danone North America d'acquérir toutes les actions restantes à 27,00 dollars par action. Le conseil d'administration a déterminé que l'offre sous-estime considérablement l'entreprise. Lifeway a récemment atteint son 20e trimestre consécutif de croissance, avec une croissance à deux chiffres de son chiffre d'affaires d'une année sur l'autre et une amélioration des marges bénéficiaires au T3 2024. L'entreprise a réalisé des rendements totaux pour les actionnaires de 788 % et 270 % respectivement au cours des cinq et trois dernières années, surpassant ses pairs et le S&P 500. La direction reste concentrée sur l'exécution de son plan stratégique pour élargir la présence sur le marché du kéfir et entrer dans des catégories adjacentes.
Lifeway Foods (NASDAQ: LWAY) hat das überarbeitete unerwünschte Übernahmeangebot von Danone North America abgelehnt, alle verbleibenden Aktien zu 27,00 Dollar pro Aktie zu erwerben. Der Vorstand stellte fest, dass das Angebot das Unternehmen erheblich unterbewertet. Lifeway hat kürzlich das 20. Quartal in Folge mit Wachstum erreicht, mit zweistelligem Umsatzwachstum im Jahresvergleich und verbesserten Gewinnmargen im Q3 2024. Das Unternehmen hat einen Gesamtertrag für die Aktionäre von 788 % und 270 % über fünf und drei Jahre hinweg erzielt und damit die Mitbewerber sowie den S&P 500 übertroffen. Das Management konzentriert sich weiterhin auf die Umsetzung seines strategischen Plans zur Erweiterung der Marktpräsenz von Kefir und zum Eintritt in benachbarte Kategorien.
- 20 consecutive quarters of growth achieved
- Double-digit year-over-year revenue growth in Q3 2024
- Improved profit margins in Q3 2024
- 788% shareholder returns over 5 years
- 270% shareholder returns over 3 years
- Outperformance compared to food and beverage peers and S&P 500
- None.
Insights
The rejection of Danone's
Danone's offer appears opportunistic, coming at a time when Lifeway has demonstrated substantial operational momentum in the growing functional beverage market. The kefir producer's expansion strategy and market positioning in the probiotic segment suggest potential for continued value creation beyond the proposed acquisition price. The board's decision indicates confidence in the company's standalone growth trajectory and ability to capture more market share in the expanding functional beverage space.
The decision highlights Lifeway's strong position in the rapidly growing functional beverage market. Their sustained growth trajectory in the competitive probiotic products sector demonstrates effective market penetration and brand strength. The company's successful expansion strategy and consistent performance metrics suggest they're effectively capitalizing on increasing consumer demand for gut health products.
The rejection of Danone's bid, despite its significant market presence in the dairy sector, indicates Lifeway's management sees greater value in maintaining independence to pursue their growth strategy. Their track record of outperforming both peers and the S&P 500 validates this confidence, suggesting potential for continued market share expansion and value creation through independent operations.
After careful and thorough consideration, 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
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.
Evercore is serving as a financial advisor to Lifeway and Sidley Austin LLP is serving as legal counsel to Lifeway.
About Lifeway Foods, Inc.
Lifeway Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, plans or expectations for our business, operations, financial performance or condition. These statements use words such as "continue," "believe," "expect," "anticipate," "plan," "project," "estimate," "outlook," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could." You are cautioned not to rely on these forward-looking statements. These forward-looking statements are made as of the date of this press release, are based on current expectations of future events and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lifeway's control. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; customer acceptance of products and services; and other factors discussed in Part I, Item 1A "Risk Factors" of Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Part II, Item 1A "Risk Factors" of Lifeway's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024. Lifeway expressly disclaims any obligation to update any forward-looking statements (including, without limitation, to reflect changed assumptions, the occurrence of anticipated or unanticipated events or new information), except as required by law.
Contacts:
Derek Miller
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net
OR
Longacre Square Partners
Joe Germani / Miller Winston
Email: LWAY@longacresquare.com
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SOURCE Lifeway Foods, Inc.
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