Danone is divesting its stake in Lifeway Foods, a US-based kefir manufacturer, by offloading its entire 22.7% interest in a deal estimated at around $67 million.
The French dairy firm, which initially invested in Lifeway in 1999, disclosed this transaction through a secondary underwritten public offering of 3.45 million shares, each priced at $19.50. Lifeway clarified that the shares being sold are exclusively owned by Danone, thus the company itself will not benefit from the proceeds of this offering.
As part of the transaction, Lifeway intends to buy back approximately $5 million worth of shares at the same price, contingent upon the deal’s finalization.
This sale concludes a drawn-out period of friction between the two entities, which intensified following Danone’s failed attempts to acquire Lifeway in 2024. Danone made offers initially set at $25 per share and later increased to $27 per share, both of which Lifeway’s board dismissed, asserting that the proposals did not adequately reflect the company’s value.
Tensions further escalated last year when Danone initiated legal proceedings concerning Lifeway’s decision to issue shares to CEO Julie Smolyansky. Lifeway subsequently indicated plans to file a counterclaim.
Despite the strained relationship, discussions took place in August 2024 to enhance collaboration and explore potential transactions. However, by September, Danone confirmed it would not present a new offer and instead began evaluating options regarding its minority interest.
Throughout this period of discord, Lifeway has consistently demonstrated robust financial performance. The company reported net sales of $212.4 million for 2025, marking a 13.7% year-on-year increase, while operating income rose by 16.7% to $16.1 million. Net income surged by 53.6% to reach $13.8 million.
In the first quarter of 2026, Lifeway also reported ongoing growth, with net sales climbing 36.7% to $63 million. Operating income jumped from $1.57 million to $6.32 million, and net income increased by 32% to $4.6 million.
Danone has stated that its decision to divest will not impact its strategy in the United States, emphasizing its commitment to dairy and plant-based offerings within the American market.