Lifeway Foods says Danone has continued ‘hostile behavior’ in Schedule 13D

Lifeway Foods (LWAY) issued a statement regarding recent actions by Danone (DANOY): “Danone has continued its hostile behavior in its latest Schedule 13D filed with the Securities and Exchange Commission referencing a lawsuit against Lifeway. This is the latest aggressive action in Danone’s campaign to execute a hostile takeover of Lifeway at a price that substantially undervalues the company. Danone is choosing to exploit its vast corporate power to bully Lifeway’s Board and its shareholders into accepting an undervalued transaction rather than negotiating with the Company in good faith. Lifeway’s Board remains committed to maximizing the value for all shareholders and will not be pressured into a transaction that fails to do that. The latest action by Danone follows a history of poor partnership since its investment in the Company in 1999. Danone has repeatedly leveraged the 1999 Stockholders’ Agreement, which the Company believes is invalid, to benefit itself at the expense of Lifeway shareholders. Among other things, Danone has refused to grant market-level equity compensation to executives for over 20 years. For much of that period, Danone has been able to compete with Lifeway with impunity, including directly after Danone acquired Wallaby Yogurt as part of its acquisition of White Wave Foods. Danone has also effectively chilled potential value enhancing acquisitions, by virtue of its purported ability to acquire additional shares for $10, which benefits only Danone. No amount of corporate bullying will deter Lifeway from remaining steadfast in safeguarding the interests of our shareholders and other stakeholders. Lifeway is the category leader for kefir products and the most valuable consumer brand in the space. Lifeway’s full-year unaudited 2024 results represent a record year in terms of top-line revenue, net income and EBITDA. Additionally, for the last week of February 2025, Lifeway achieved another milestone with gross sales of $4,543,297 compared to $3,880,625 during the same period in 2024, representing a 17% increase in sales. Lifeway intends to file a counterclaim against Danone and will aggressively contest Danone’s claims.”