Lifeway Foods, Inc. (NASDAQ:LWAY) shares are trading lower on Wednesday after the company's Board of Directors rejected a revised unsolicited acquisition proposal from Danone North America PBC.
The proposal on November 15 offered $27.00 per share to acquire all of Lifeway's shares that Danone does not already own.
After careful evaluation, including consultations with independent financial and legal advisors, the Lifeway Board determined that the offer significantly undervalued the company and was not in the best interests of Lifeway's shareholders or other stakeholders.
According to a recent Schedule 13D amendment filing, Danone beneficially owns approximately 23.3% of Lifeway's outstanding common stock.
On November 5, 2024, Lifeway announced that its Board had rejected Danone's initial unsolicited, non-binding proposal of $25.00 per share, citing that it substantially undervalued the company.
Lifeway said it remains committed to its strategic plan of expanding its kefir offerings while also branching into adjacent product categories.
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The company reported growth in its third-quarter 2024 results, achieving its 20th consecutive quarter of growth with double-digit year-over-year revenue growth and improved profit margins.
Lifeway said it generated a total shareholder return of 788% over the past five years, vastly outperforming its food and beverage industry peers and the S&P 500.
In line with its growth momentum, Lifeway has also announced the launch of a new functional beverage: Probiotic Smoothie + Collagen made with kefir cultures. This product comes in four flavors—Matcha Latte, Berry Blast, Tropical Fruit, and Plain—and contains 5 grams of collagen per serving. It is also lactose-free, capitalizing on the growing consumer demand for lactose-free dairy alternatives.
According to Benzinga Pro, LWAY stock has gained over 56% in the past year.
Price Action: LWAY shares are trading lower by 5.72% to $23.89 at last check Wednesday.
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