Feb 9 Lifeway Foods Inc (LWAY.O), a supplier of
yogurt-like dairy beverage kefir, agreed to buy its
Philadelphia-based rival Fresh Made Dairy for about $10.1
million in cash to boost its presence in the probiotic dairy
The deal is valued at a total price of about $14.1 million,
which includes about $2.7 million in a note, $1 million of
Lifeway's treasury shares and about $2.0 million in real
estate, besides the cash component.
The deal will boost Lifeway's distribution network in the
northeast U.S. -- "an important geographic market that was
previously very difficult for Lifeway to target because local
retailers were fiercely loyal to the Fresh Made brand," Lifeway
CEO Julie Smolyansky said in a statement.
While Lifeway had total sales of about $44.5 million in
2008, Fresh Made had total sales of about $10 million.
Following the deal, Morton Grove, Illinois-based Lifeway
plans to retain all Fresh Made employees, excluding several top
Edward Smolyansky will assume the role of President and CEO
of Fresh Made, Lifeway Foods added.
Lifeway shares were up 14 cents at $8.29 Monday morning on
(Reporting by Dhanya Skariachan in Bangalore; Editing by