Perrigo to sell infant formula business to MeridianMade for up to $175 million
Perrigo has signed a definitive agreement to transfer its infant formula division to MeridianMade. The consideration totals up to $175 million, comprising $40 million in cash and up to $135 million tied to performance milestones through 2030. The transaction is slated to close in the first half of 2027, allowing Perrigo to concentrate on its consumer self‑care portfolio and improve its margin profile.
Why it matters
The company says the divestiture will enhance its margin profile and lower future capital expenditures, which could improve profitability for shareholders. Investors should expect a reduction in Perrigo’s revenue base from infant formula but a more focused product mix.
Key facts
- 1Total consideration for the sale is up to $175 million. dairyreporter.com
- 2The deal includes $40 million in cash. dairyreporter.com
- 3An additional $135 million is contingent on performance milestones through 2030. dairyreporter.com
- 4Closing is expected in the first half of 2027. dairyreporter.com
- 5Perrigo expects the transaction to enhance its margin profile and materially reduce future capital expenditures. dairyreporter.com
- 6Perrigo will focus on its consumer self‑care portfolio after the sale. dairyreporter.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.