Kefir maker Lifeway Foods has acquired smaller rival Fresh Made Dairy for US$14m.

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Lifeway said that the acquisition would boost its presence in the probiotic dairy category.


“The major catalyst behind this acquisition is the growing demand for probiotic and functional dairy products,” said Lifeway Foods’ CEO Julie 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 indicated that it would take advantage of a number of synergies, without indicating how much it expected to generate in savings.

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The company also said that it would benefit from greater purchasing power following the acquisition.


In 2008, Fresh Made posted total sales of approximately $10m.