Aug. 5 at 9:01 PM
Lifeway Foods
$LWAY, a
$409 million maker of probiotic-based products, is facing renewed boardroom turmoil as Danone (22.7% owner) signaled on August 1, 2025, that it may back Edward Smolyansky’s campaign to replace the board if acquisition talks don’t result in a deal by mid-September.
The development caps nearly four years of escalating tension. Since 2021, Edward and Ludmila Smolyansky—together long-time insiders—have repeatedly pushed for governance reforms, CEO Julie Smolyansky’s removal, and a strategic review. Despite a 2022 settlement, disputes reignited in 2024, including legal battles, proxy fights, and criticism over rejected Danone offers, insider compensation, and governance practices.
Danone, frustrated by Lifeway’s entrenchment and rejection of its offers—most recently a 72% premium bid—entered into a limited standstill agreement on August 1, 2025, after Lifeway reached out to "reset" the relationship.