Perrigo Co plc has announced a significant strategic move by entering into a definitive agreement to sell its Infant Formula business to MeridianMade. The deal, valued at up to $175 million, includes an initial cash payment of $40 million, with additional contingent payments based on future performance milestones through 2030. This decision is part of Perrigo's broader strategy to streamline its operations and focus on consumer self-care products.

The announcement was made on October 29, 2026, and is seen as a pivotal step in Perrigo's evolution into a more focused consumer self-care company. The company aims to simplify its portfolio, which aligns with its Three-S plan to Stabilize, Streamline, and Strengthen its business.

Background

Perrigo Company plc, listed on the New York Stock Exchange under the ticker PRGO, specializes in pharmaceutical preparations, as classified under SIC 2834. The company is headquartered in Dublin, Ireland, and operates primarily in the consumer self-care sector. Perrigo has been actively reviewing its strategic alternatives to enhance its operational efficiency and financial performance.

What the Filing Says

The SEC filing indicates that the divestiture will allow Perrigo to concentrate on its core consumer self-care portfolio. According to the filing, "This divestiture advances Perrigo's evolution into a more focused consumer self-care company with a diversified portfolio of OTC products addressing essential, everyday health needs." The agreement follows a comprehensive review of strategic alternatives for the Infant Formula business.

Impact

This transaction is expected to significantly affect Perrigo's financial outlook. The sale is anticipated to enhance the company's margin profile and materially reduce future capital expenditures. The Infant Formula business generated net sales of $380 million in the trailing four quarters ended June 27, 2026, with an adjusted operating income of $8 million. Following the completion of the sale, Perrigo's future reported results will more accurately reflect the financial profile of its core operations.

What's Next

The transaction is subject to customary closing conditions and regulatory approvals, with closing expected in the first half of 2027. Until then, both Perrigo's Infant Formula business and MeridianMade will operate as independent entities. Perrigo will continue to manage the Infant Formula business, maintaining its commitment to safety, quality, and customer service until the deal is finalized.

"Today's announcement marks an important milestone in advancing the Streamline pillar of our Three-S plan to Stabilize, Streamline, and Strengthen the business," said Albert Manzone, Interim President and Chief Executive Officer.