LIFEWAY FOODS RESPONDS TO LETTER FROM DANONE REAFFIRMING REJECTION OF
UNSOLICITED TAKEOVER OFFER AND THAT 1999 STOCKHOLDER AGREEMENT SHOULD BE
VOIDED FOR VIOLATING ILLINOIS LAW
PR Newswire
MORTON GROVE, Ill., Jan. 6, 2025
-- Company also announces unaudited preliminary fourth quarter net sales
between $45.1 million to $46.6 million
-- Full year 2024 preliminary unaudited net sales are projected to range
between $185.0 million and $186.5 million compared to $160.1 million in
2023
MORTON GROVE, Ill., Jan. 6, 2025 /PRNewswire/ -- Lifeway Foods, Inc.
$(LWAY)$ ("Lifeway" or the "Company"), a leading U.S. supplier of
kefir and fermented probiotic products to support the microbiome, today
announced that its Board of Directors (the "Board") has responded to the
December 30, 2024 letter sent to Lifeway by Danone North America PBC
("Danone") reaffirming that the Company rejected Danone's offer to
acquire the Company because it severely undervalues the Company, based
on analysis by the Company's independent financial and legal advisors.
The Board reiterated that it is not opposed to a sale at a price that
more accurately reflects the true value of the Company.
Further, the Company has made clear that the 1999 Stockholders agreement
between the Company and Danone violates Illinois law. An agreement that
is invalid does not become valid simply because both parties follow its
terms for a period of time, no matter how long. The Company intends to
pursue all available remedies to enforce Illinois law and nullify the
agreement.
"Danone is opportunistically determined to push through an inadequate
offer and in the meantime, Lifeway has continued to execute on its
strategy and is delivering substantial value for shareholders," said
Julie Smolyansky, Chairwoman & CEO of Lifeway. "In addition, for the
full year 2024, Lifeway's net sales are projected to range between
$185.0 million to $186.5 million compared to $160.1 million in 2023,
which demonstrates the efficacy of Lifeway's business strategy and
execution," added Ms. Smolyansky.
Given Danone's unsolicited and opportunistic proposal to acquire Lifeway,
the Company and its outside advisors are looking at the relationship
between the parties and assessing how to best protect the interests of
the Company and its shareholders.
Lifeway's CEO Ms. Smolyansky has presided over a tremendously successful
period of growth, including 21 consecutive quarters of growth through
the fourth quarter of 2024, double-digit year-over-year revenue growth
in the third quarter of 2024, and total shareholder returns of 788% and
270% over the past five and three years, 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 as
noted above. The Board believes that Ms. Smolyansky's continued
stewardship is critical to ensuring the success of the Company's
standalone business plan.
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 press release contains "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995 regarding, among
other things, Lifeway's outlook, expected manufacturing efficiencies and
fixed cost absorption, expectations regarding future operating and
financial performance, future business strategy and objectives and
expected shipping to Dubai and the United Arab Emirates. These
statements use words, and variations of words, such as "will," "continue,
" "build," "future," "increase," "drive," "believe," "look," "ahead,"
"confident," "deliver," "outlook," "expect," and "predict." 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; and customer acceptance of products
and services. A further list and description of these risks,
uncertainties, and other factors can be found in Lifeway's Annual Report
on Form 10-K for the fiscal year ended December 31, 2023 and Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024. Copies of
these filings are available online at https://www.sec.gov,
http://lifewaykefir.com/investor-relations/, or on request from Lifeway.
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.
Perceptual Advisors
Dan Tarman
Email: dtarman@perceptualadvisors.com
Company contact:
Derek Miller
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net
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SOURCE Lifeway Foods, Inc.
(END) Dow Jones Newswires
January 06, 2025 09:57 ET (14:57 GMT)
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