The synergies between the Lifeway and Fresh Made provide natural benefits to Lifeway's shareholders," Mr. Smolyansky added. "We serve the same customers, we share the same shelf space, we purchase the same raw materials, and we exhibit at the same trade shows. This transaction will enhance Lifeway's purchasing power, increase our ability to target our market category, and alleviate some of the competitive pressures in our business" said Mr. Smolyansky.
"This acquisition also provides Lifeway with enhanced distribution access to the northeast USA, an important geographic market that was previously very difficult for Lifeway to target because local retailers were fiercely loyal to the Fresh Made brand, just as we have always had a very strong advantage in our hometown of Chicago," added Ms. Smolyansky. "This transaction is a major step and another milestone for Lifeway, as we continue to expand the Kefir phenomenon with our line of great-tasting, healthy products. This elevates our competitive positioning in the marketplace and creates a tremendous footprint in the growing probiotic and functional dairy market," she added.
Lifeway Foods had 2008 total sales of approximately $44,500,000, a 15% increase over 2007.
Fresh Made brand Kefir and other products will continue to be manufactured by Fresh Made, Inc. as a wholly-owned subsidiary of Lifeway, from Fresh Made's existing 25,000-square-foot facility in Philadelphia, Pennsylvania, bringing the top two kefir brands under Lifeway's control. Excluding several top executives, all Fresh Made employees will continue to be retained. Edward Smolyansky will assume the role of President and CEO of Fresh Made.
The total purchase price of this transaction is $14,050,000 million for all of the stock of Fresh Made. Specifically, the terms include $10,050,000 in cash to be paid at the closing, $2,735,000 in a note, with quarte
|SOURCE Lifeway Foods, Inc.|
Copyright©2009 PR Newswire.
All rights reserved