MORTON GROVE, Ill., Feb. 9 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc., (Nasdaq: LWAY), makers of a nutritious, probiotic dairy beverage called Kefir, today announced the acquisition of Fresh Made Dairy, its top competitor in the Kefir market with a #2 overall market share. The acquisition strengthens Lifeway's presence in the rapidly growing market for probiotic dairy products. Fresh Made had 2008 total sales of approximately $10 million and 2007 total sales of approximately $8,500,000.
"The major catalyst behind this acquisition is the growing demand for probiotic and functional dairy products," said Lifeway Foods' CEO Julie Smolyansky. "For over 20 years, both companies have spent a large amount of time, energy, and money fiercely competing against one another in the same market space. Today, with the completion of the acquisition, we couldn't be more excited about being able to shift our focus, and combine our resources to growing and expanding the whole probiotic category," Smolyansky added.
Edward Smolyansky, Lifeway Foods' CFO said, "This acquisition couldn't have come at a better time for Lifeway. Most of our input costs are at multi-year lows, including many of our production supply costs, transportation costs, and most of our raw materials including milk. Milk prices are at multi year lows, with February, 2009 prices coming in at their lowest levels in 6 years. Additionally, with interest rates where they currently sit, the costs to finance a portion of the acquisition purchase price are also at all time lows. These factors should bolster Lifeway's already strong cash flows going forward, and at a time when so few companies are growing and expanding. Moreover, the last two weeks of January 2009 were back to back record weeks for shipments and sales, so we are extremely optimistic about our company's future at th
|SOURCE Lifeway Foods, Inc.|
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