February 10, 2009
Lifeway Foods acquires Fresh Made Dairy
Dairy product manufacturer, Lifeway Foods, Inc. has announced its acquisition of competitor Fresh Made Dairy, for US$14.05 million.
The total purchase price included about US$2 million in real estate. Terms also included US$10.05 million in cash to be paid at the closing, US$2.735 million in a note, with quarterly installment payments over two years, and US$1 million of Lifeway's treasury shares.
The major catalyst behind the acquisition is the growing demand for probiotic and functional dairy products, said Lifeway CEO Julie Smolyansky.
The acquisition, which was sealed on Friday (Feb 6), would strengthen Lifeway's presence in the growing market for probiotic dairy products, and provide the company an enhanced distribution access to northeast US, a key geographic market of Fresh Made Dairy, said Smolyansky.
Fresh Made Dairy's products are distributed throughout the US in traditional food markets and large supermarkets, with 2008 total sales reaching US$10 million.
