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Lifeway Foods (NASDAQ: LWAY) anticipates a $5 million net gain from the sale of Simple Mills to Flowers Foods, following their early investment in 2015. The total expected proceeds for Lifeway will reach $6.5 million, including a previously realized gain of $1.5 million in 2019.

The acquisition deal values Simple Mills at $795 million and is expected to close in Q1 2025, subject to regulatory approval. Lifeway's Board of Directors has expressed support for CEO Julie Smolyansky, who was responsible for the initial Simple Mills investment decision.

Lifeway Foods (NASDAQ: LWAY) prevede un dalla vendita di Simple Mills a Flowers Foods, a seguito del loro investimento iniziale nel 2015. I proventi totali attesi per Lifeway raggiungeranno 6,5 milioni di dollari, inclusi un guadagno già realizzato di 1,5 milioni di dollari nel 2019.

Il valore dell'acquisizione di Simple Mills è stimato in 795 milioni di dollari e si prevede che si concluda nel primo trimestre del 2025, soggetto all'approvazione normativa. Il Consiglio di Amministrazione di Lifeway ha espresso supporto per l'amministratore delegato Julie Smolyansky, responsabile della decisione di investimento iniziale in Simple Mills.

Lifeway Foods (NASDAQ: LWAY) anticipa una ganancia neta de 5 millones de dólares por la venta de Simple Mills a Flowers Foods, tras su inversión inicial en 2015. Los ingresos totales esperados para Lifeway alcanzarán 6,5 millones de dólares, incluyendo una ganancia previamente realizada de 1,5 millones de dólares en 2019.

El acuerdo de adquisición valora a Simple Mills en 795 millones de dólares y se espera que se cierre en el primer trimestre de 2025, sujeto a la aprobación regulatoria. La Junta Directiva de Lifeway ha expresado su apoyo a la CEO Julie Smolyansky, quien fue responsable de la decisión de inversión inicial en Simple Mills.

라이프웨이 푸드(Lifeway Foods) (NASDAQ: LWAY)는 2015년 초기 투자 이후 Simple Mills를 Flowers Foods에 판매하여 500만 달러의 순이익을 예상하고 있습니다. 라이프웨이에 대한 총 예상 수익은 650만 달러에 이를 것이며, 2019년에 이미 실현된 150만 달러의 이익을 포함합니다.

이번 인수 거래는 Simple Mills의 가치를 7억 9500만 달러로 평가하고 있으며, 규제 승인을 조건으로 2025년 1분기에 마무리될 것으로 예상됩니다. 라이프웨이의 이사회는 초기 Simple Mills 투자 결정을 책임진 CEO 줄리 스몰리안스키(Julie Smolyansky)에 대한 지지를 표명했습니다.

Lifeway Foods (NASDAQ: LWAY) prévoit un bénéfice net de 5 millions de dollars suite à la vente de Simple Mills à Flowers Foods, après leur investissement initial en 2015. Les recettes totales attendues pour Lifeway atteindront 6,5 millions de dollars, y compris un bénéfice déjà réalisé de 1,5 million de dollars en 2019.

L'accord d'acquisition valorise Simple Mills à 795 millions de dollars et devrait être finalisé au premier trimestre 2025, sous réserve de l'approbation réglementaire. Le conseil d'administration de Lifeway a exprimé son soutien à la PDG Julie Smolyansky, qui était responsable de la décision d'investissement initiale dans Simple Mills.

Lifeway Foods (NASDAQ: LWAY) erwartet einen netto Gewinn von 5 Millionen Dollar aus dem Verkauf von Simple Mills an Flowers Foods, nach ihrer frühen Investition im Jahr 2015. Die insgesamt erwarteten Einnahmen für Lifeway werden 6,5 Millionen Dollar erreichen, einschließlich eines bereits realisierten Gewinns von 1,5 Millionen Dollar im Jahr 2019.

Der Übernahmevertrag bewertet Simple Mills mit 795 Millionen Dollar und wird voraussichtlich im ersten Quartal 2025 abgeschlossen, vorbehaltlich der behördlichen Genehmigung. Der Vorstand von Lifeway hat seine Unterstützung für die CEO Julie Smolyansky zum Ausdruck gebracht, die für die ursprüngliche Investitionsentscheidung in Simple Mills verantwortlich war.

Positive
  • Expected $5 million net gain from Simple Mills sale
  • Total investment return of $6.5 million including previous gains
  • Successful early-stage investment strategy validation
Negative
  • Sale proceeds represent a one-time gain, not recurring revenue

Insights

Lifeway Foods' announcement of a $5 million net gain from the Simple Mills sale represents a significant financial windfall for a company of Lifeway's size. This gain, combined with the $1.5 million already realized in 2019, brings total proceeds to $6.5 million from what appears to be a relatively small early-stage investment made in 2015.

The $795 million acquisition price by Flowers Foods indicates Simple Mills has achieved substantial valuation growth since Lifeway's initial investment. While we don't know Lifeway's exact ownership percentage, the $6.5 million total return suggests this was an exceptionally successful capital allocation decision that has delivered meaningful shareholder value.

This one-time gain provides Lifeway with increased financial flexibility, potentially funding growth initiatives in their core probiotic products business, reducing debt, or returning capital to shareholders. The board's explicit endorsement of CEO Julie Smolyansky specifically highlights this investment win, suggesting management has demonstrated skill in identifying high-potential opportunities outside their core operations.

For investors, this represents pure upside - an unexpected cash infusion that strengthens Lifeway's financial position without diluting existing shareholders or taking on additional debt obligations.

Lifeway's successful exit from Simple Mills demonstrates exceptional strategic foresight in their capital allocation decisions. By identifying Simple Mills as a promising investment opportunity in 2015, well before the current boom in clean-label and better-for-you food products, Lifeway positioned itself to capture significant value outside its core operations.

This investment approach shows management's ability to recognize adjacent growth opportunities in the broader natural foods ecosystem. Rather than solely focusing internal investment on their kefir products, this diversified approach allowed Lifeway to participate in the growth of complementary categories without the execution risk of developing new product lines themselves.

The $6.5 million total return over the investment period delivers immediate value and validates this strategic approach. While this appears to be an opportunistic investment rather than a systematic venture program, it demonstrates management's understanding of emerging consumer trends and ability to identify promising brands early in their lifecycle.

The timing is particularly advantageous, as this cash infusion comes during a period when many food companies face margin pressures. This additional capital provides Lifeway strategic flexibility at an opportune moment, potentially funding innovation, manufacturing improvements, or marketing initiatives in their core probiotic business.

In the news release, LIFEWAY FOODS EXPECTS TO REALIZE $5 MILLION NET GAIN FROM SALE OF SIMPLE MILLS TO FLOWERS FOODS, issued 11-Feb-2025 by Lifeway Foods, Inc. over PR Newswire, we are advised by the company that two instances of "Simple Foods" in the first paragraph have been updated to "Simple Mills." The complete, corrected release follows:

LIFEWAY FOODS EXPECTS TO REALIZE $5 MILLION NET GAIN FROM SALE OF SIMPLE MILLS TO FLOWERS FOODS

Gain comes as a result of early investment in Simple Mills made by Lifeway in 2015

MORTON GROVE, Ill., Feb. 11, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (NASDAQ: LWAY) ("Lifeway" or the "Company"), a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, expects to realize approximately $5 million of net profit as a result of the recently announced sale of Simple Mills to Flowers Foods. Lifeway was an early investor in Simple Mills in 2015 and since that time, the Company has already realized a $1.5 million gain in 2019, bringing the total expected net proceeds to Lifeway of approximately $6.5 million.

"We extend our congratulations to Simple Mills and its CEO Katlin Smith for its successful exit based on the impending $795 million acquisition by Flowers Foods," said Julie Smolyansky, Lifeway's CEO. "When we first invested in Simple Mills we saw the potential growth of the company and we are delighted that Lifeway's shareholders will benefit from our early investment," added Ms. Smolyansky.

The acquisition of Simple Mills is subject to regulatory approval and is projected to close during the first quarter of 2025.

Lifeway's Board of Directors affirms its support for the management of the Company by Julie Smolyansky who was responsible for the early investment in Simple Mills.

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 the United States, Mexico, Ireland, South Africa, United Arab Emirates and France. Learn how Lifeway is good for more than just you at lifewayfoods.com.

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 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. 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:
Perceptual Advisors
Dan Tarman
Email: dtarman@perceptualadvisors.com

Derek Miller
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lifeway-foods-expects-to-realize-5-million-net-gain-from-sale-of-simple-foods-to-flowers-foods-302374095.html

SOURCE Lifeway Foods, Inc.

FAQ

How much will Lifeway Foods (LWAY) gain from the Simple Mills sale to Flowers Foods?

Lifeway Foods will realize approximately $5 million in net profit from the sale, bringing total proceeds to $6.5 million including a previous $1.5 million gain from 2019.

What is the total acquisition value of Simple Mills by Flowers Foods?

Simple Mills is being acquired by Flowers Foods for $795 million.

When did Lifeway Foods initially invest in Simple Mills?

Lifeway Foods made its early investment in Simple Mills in 2015.

When is the Simple Mills acquisition expected to close?

The acquisition is projected to close during the first quarter of 2025, subject to regulatory approval.
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