PARIS — Danone SA has raised its offer to acquire Morton, Ill.-based Lifeway Foods from $25 per share to $27 per share, for a total value of approximately $300 million. The new proposal comes after Lifeway Foods rejected Danone’s initial offer that valued the kefir manufacturer at approximately $283 million.
In a letter sent to Julie Smolyansky, chief executive officer of Lifeway Foods, Shane Grant, president and CEO of Danone North America, wrote, “We remain convinced that a transaction with Danone will allow Lifeway’s shareholders to realize immediate value and to drive Lifeway’s continued development. We continue to believe Lifeway has an attractive opportunity to achieve its full potential through a combination with Danone, removing the constraints and additional resources required for a publicly listed company of Lifeway’s size.”
Danone made its initial offer of $25 per share to acquire Lifeway Foods in late September, which implied a premium of 59% over Lifeway’s three-month volume weighted average price, according to the company. On Nov. 6, Lifeway Foods rejected Danone’s offer, saying it undervalued the company.
The new offer implies a premium of 72% over the three-month volume weighted average price, according to Grant’s letter.
“We believe that this updated indicative price fully reflects the fundamental potential of the company and provides Lifeway’s shareholders with the certainty of an attractive and immediate cash premium,” Grant wrote.
