Investors plan to replace Lifeway Foods' board in a long-standing feud

From Yahoo Finance: 2025-07-03 13:38:00

Investors Edward and Ludmila Smolyansky plan to replace Lifeway Foods’ board, submitting a consent statement to the SEC. Their proposal includes reversing bylaw changes, removing the current board, electing new directors, and blocking family hires. The Smolyanskys have been in a long-standing feud with Lifeway since 2022.

In September, Danone offered to acquire the remaining shares of Lifeway for $25 each, but Lifeway rejected the offer as undervalued. Danone increased the bid to $27 per share, supported by the Smolyanskys, but Lifeway’s board turned it down. A legal dispute ensued over a breach of a 1999 shareholder agreement.

In the first quarter of 2025, Lifeway reported net sales of $46.1m, up 3.3% from 2024. Net income was $3.5m, up 45.8% year on year. The company aims to achieve $45–50m in adjusted EBITDA for its 2027 financial year. Edward Smolyansky has launched a campaign to replace Lifeway’s board of directors.

Read more: Critical investors aim to replace entire Lifeway board