Perrigo to sell its infant formula business to MeridianMade for up to $175 million
Perrigo announced the sale of its infant formula division to contract manufacturer MeridianMade. The transaction includes a $40 million cash payment at closing and up to $135 million in performance‑based milestones through 2030. Closing is expected in the first half of 2027, subject to regulatory approval. Perrigo said the divestiture will improve margins, cut future capital expenditures and let it focus on its core consumer self‑care portfolio.
Why it matters
The sale removes a low‑margin, capital‑intensive segment, which should enhance Perrigo's overall margin profile and free cash for its core OTC business, according to the company's statement. The company also expects to record a non‑cash impairment charge of $275 million‑$375 million in Q4 2026, which will affect its reported earnings.
Key facts
- 1The deal total is up to $175 million, comprising $40 million cash at closing and up to $135 million in performance‑related payments. tradingview.com
- 2Closing is expected in the first half of 2027, subject to customary conditions and regulatory approvals. stocktitan.net
- 3Perrigo expects a non‑cash impairment charge of $275 million‑$375 million in the fourth quarter of 2026. tradingview.com
- 4Infant formula generated $380 million in sales and $8 million in adjusted operating income for Perrigo in the prior 12 months. finance.yahoo.com
Open questions
- Material 5 states the transaction is expected to close in H1 2024, conflicting with other sources that say H1 2027.
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.