Danone and Lifeway Foods have reached a truce after weeks of legal battles and disagreements. The agreement includes Danone pausing litigation against Lifeway and voting in favor of the company’s board. This comes shortly after Danone decided to abandon its year-long effort to acquire Lifeway, citing an inability to work effectively together.
The dispute between the two companies began earlier this year when Danone sued Lifeway for issuing new shares to CEO Julie Smolyansky without Danone’s consent. Lifeway countersued, claiming Danone’s allegations were invalid. Danone, which owns 22.7% of Lifeway’s stock, and Lifeway have now agreed to halt all legal action against each other.
As part of the agreement, Lifeway will appoint four new independent directors who are not affiliated with either company or the Smolyansky family. Two of Lifeway’s longest-serving board members will step down, and the roles of chairman and CEO will be separated, with Julie Smolyansky remaining as CEO. An independent director will eventually serve as chairman.
Danone has also agreed to vote in favor of Lifeway’s board of directors at the company’s annual meetings in 2025 and 2026. This move comes as Lifeway faced a proposal from Lucy and Edward Smolyansky to remove the entire Lifeway board, including Julie.
Julie Smolyansky expressed her contentment with the agreement, stating that it allows both companies to move forward with clarity and stability while focusing on their core mission of providing probiotic-rich foods to families and creating value for shareholders.
Danone has indicated that it is continuing to review its investment in Lifeway, including the possibility of selling its shares. The company declined to comment further beyond a Securities and Exchange Commission filing.
This resolution marks a new chapter for both Danone and Lifeway Foods as they seek to put their differences behind them and move forward with a renewed focus on their respective goals and objectives.
