Perrigo to Sell Infant Formula Business to MeridianMade for Up to $175 Million
Perrigo (PRGO) will sell its Infant Formula business to MeridianMade for up to $175M, including $40M in cash and $135M in performance milestones. The deal, expected to close in H1 2027, aims to improve margins and reduce capital expenditures. PRGO expects a non-cash impairment charge of $275M-$375M in Q4 2026.
How this was made
The 30-second read
Why it matters
The transaction includes cash at closing plus performance-based milestones through 2030, and Perrigo expects a sizable non-cash impairment in Q4 2026 with infant formula moved to discontinued operations starting then. Closing is targeted for H1 2027 subject to regulatory approvals.
Market read
Traders can reassess PRGO’s near-term reported earnings optics (impairment and discontinued operations) and its longer-term margin and capex profile ahead of the 2027 closing.
What to watch
Investors may discount the deal value if milestone achievement is uncertain, and may scrutinize how discontinued operations presentation changes comparability and guidance interpretation.
Background
Perrigo is repositioning away from infant formula toward consumer self-care, using a sale of its infant formula business to MeridianMade.
Ticker impact
Perrigo agreed to sell its infant formula business to MeridianMade for up to $175 million, with a planned 2026 impairment and 2027 closing.
Likely near-term negative bias as investors price the announced impairment and discontinued-ops reclassification, partially offset by the strategic focus and margin/capex benefits.
The article discloses deal consideration, expected impairment range, and timing (discontinued ops in Q4 2026, closing H1 2027), which directly affects PRGO’s reported financials and forward narrative.
Market effects
Signals ongoing portfolio reshaping in consumer health and infant formula, potentially affecting investor expectations for capital intensity and margin structure among peers.
Limited direct regional spillover; primarily impacts US-listed consumer health sentiment.
Moderate, as infant formula is globally traded but the disclosed event is company-specific and not a supply shock.
Counterpoint
The impairment is non-cash and the sale price is capped by performance milestones, so the market may focus more on execution risk and regulatory approval than on the impairment magnitude.
Key entities
- companyPerrigo Co plc
US-listed company (PRGO) agreeing to sell its infant formula business to MeridianMade for up to $175 million.
- companyMeridianMade
Buyer of Perrigo’s infant formula business under a deal with cash and performance milestone consideration.
