Shares of Lifeway Foods Inc. (NASDAQ:LWAY) dropped 23% following news that Danone S.A. has halted its efforts to acquire the U.S.-based kefir producer, according to a regulatory filing.
Danone North America PBC had signed a confidentiality agreement with Lifeway on August 1, 2025, to begin due diligence for a potential takeover. However, on September 17, 2025, the company concluded it could not proceed with the acquisition and officially informed Lifeway that it was abandoning the pursuit.
In response, Lifeway issued a statement reaffirming its commitment to enhancing shareholder value through executing its strategic plan and pursuing other opportunities to grow the business. The Illinois-based company had previously established a Strategic Review Committee of independent directors to supervise the process and had been actively engaged with Danone regarding the unsolicited proposal.
Despite the deal falling through, Lifeway highlighted its strong recent financial performance, noting record sales in the first half of 2025. The company reported $53.9 million in net sales for the second quarter, reflecting an 18% year-over-year 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 rise.
The company stressed that it has achieved 22 consecutive quarters of growth. Lifeway produces kefir, cheeses, and the ProBugs line for children, with products available in the U.S., Mexico, Ireland, South Africa, UAE, and France.
The filing also noted that Danone is exploring options for its Lifeway investment, which could include voting its shares in support of Edward Smolyansky’s proposals to replace the company’s entire Board of Directors, though no final decision has been made.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.