Perrigo Announces Agreement to Divest Infant Formula Business to MeridianMade
Perrigo has agreed to divest its Infant Formula business to MeridianMade for total consideration of up to $175 million — $40 million cash at closing plus up to $135 million contingent on milestones through 2030. The sale advances the Streamline pillar of Perrigo's Three-S plan and is expected to enhance margins and materially reduce future capital expenditures. The divested business generated $380 million in trailing-four-quarter net sales but only $8 million in segment adjusted operating income. Perrigo expects to record a non-cash impairment of $275-$375 million in Q4 2026, with Infant Formula moving to discontinued operations from that quarter.
Key figures
- Deal Value Usd
- 175000000
- Expected close
- first half of 2027
- Cash at closing
- $40 million
- Contingent consideration
- up to $135 million through 2030
- Infant formula ttm net sales
- $380 million
- Expected non cash impairment q4 2026
- $275 to $375 million
- Infant formula segment adjusted operating income
- $8 million
AI analysis
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