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Investing.com -- Lifeway Foods Inc. (NASDAQ:LWAY) stock fell 23% after French food giant Danone S.A. terminated its pursuit to acquire the kefir producer, according to a regulatory filing.
Danone North America PBC had entered into a confidentiality agreement with Lifeway on August 1, 2025, to conduct due diligence for a potential acquisition. However, on September 17, 2025, Danone determined it could not confirm its previous acquisition proposal and informed Lifeway of its decision to end the pursuit.
In response, Lifeway issued a statement saying it remains committed to driving shareholder value through executing its strategic plan and exploring value-enhancing opportunities. The Morton Grove, Illinois-based company had formed a Strategic Review Committee comprised of independent directors to oversee the process and engaged extensively with Danone regarding the unsolicited proposal.
Despite the failed acquisition talks, Lifeway highlighted its recent financial performance, noting record-breaking sales in the first half of 2025. The company reported $53.9 million in net sales during the second quarter, representing an 18% YoY increase on a comparable basis. For the first two months of the third quarter through August 31, Lifeway recorded $39.1 million in unaudited net sales, marking a 20% YoY increase.
The company emphasized it has delivered 22 consecutive quarters of growth. Lifeway produces kefir, cheeses, and a ProBugs line for children, with products sold across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France.
According to the filing, Danone is now reviewing alternatives for its investment in Lifeway, including potentially voting its shares in favor of Edward Smolyansky’s proposals to replace Lifeway’s entire Board of Directors, though no final decision has been made.
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