MORTON GROVE, ILL. — Fermented dairy manufacturer Lifeway Foods, Inc. shared that it received an “unsolicited, non-binding” proposal from Danone North America PBC to acquire all of the outstanding shares of the kefir maker’s common stock that aren’t already owned by Danone.

The letter from Danone offered $25 per share in cash to the Illinois-based dairy processing company, which implies a premium of 59% over Lifeway’s three-month volume weighted average price, according to a Sept. 23 filing with the US Securities and Exchange Commission. The offer equates to about $283.4 million, based on 11.34 million shares of common stock outstanding as of Aug. 6.

Danone, which has been a shareholder in Lifeway for more than two decades, currently owns approximately 23.4% of Lifeway’s outstanding common stock.

Shane Grant, group deputy chief executive officer and CEO Americas, noted in a Sept. 23 letter to Julie Smolyansky, president and CEO of Lifeway Foods, that Danone’s ownership stake in Lifeway over the past two decades has allowed the Paris-based company to closely follow the development of Lifeway. Specifically, he pointed to Lifeway’s “ability to deliver consistent growth over time, especially in the most recent quarters, to bring to market kefir products matching consumers’ demand and preferences, and to establish Lifeway’s brand image.”

“In recognizing the solid performance of the company over the last few years, we believe Lifeway has an attractive opportunity to achieve its full potential through a combination with Danone, removing the constraints and additional resources required for a publicly listed company of Lifeway’s size,” Grant said. “We are confident that Danone’s operations and dedicated resources would unlock significant opportunities and value for Lifeway, notably by providing further innovation, distribution and marketing support.”

Grant also indicated that a proposed acquisition of Lifeway fits in well with Danone’s next chapter of its Renew strategy, which is expected have a strong focus on gut health.

The proposal is subject to the completion of due diligence and negotiation of definitive agreements.

Lifeway said its board of directors will consult with independent outside advisors and “carefully review and evaluate the proposal to determine the course of action that it believes is in the best interests of the company and its stakeholders.”

Founded in 1986, Lifeway Foods is one of the nation’s largest suppliers of the probiotic fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces frozen kefir, specialty cheeses and a ProBugs line for children. The company’s products are sold across the United States, Canada, Latin America, the United Kingdom and South Africa, where Lifeway recently established a distribution presence.