November 26, 2024 13:17 GMT
CONSUMER STAPLES: Danone; Lifeway foods (bolt-on) rejects revised takeover price
CONSUMER STAPLES
(BNFP; Baa1/BBB+)
Danone bumped the offer price from $25 to $27 a fortnight ago but lifeway has again rejected it this morningadding "substantially undervalues the company" but "is not opposed to the sale of the company". Danone was offering a +27% premium and has already said it will fund with cash on hand (has €2b). Even if it bids up to $35/share (~€500m) its not a credit mover for us (+0.1x on leverage).
It's a fast growing (+19% volume-led) Keifr manufacturer - Danone already does Kiefr and has a existing 23% stake in Lifeway but looks like it wants to increase US presence. Lifeway on its website calls Kefir "the champagne of dairy".
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