Perrigo agrees infant-formula disposal with most proceeds dependent on milestones

Perrigo ($PRGO) agreed to sell its infant-formula business to MeridianMade for up to $175 million. Only $40 million is payable in cash at closing; the remaining $135 million depends on performance milestones through 2030. Completion is expected in the first half of 2027, subject to regulatory approvals and customary conditions. Perrigo will continue owning and operating the business until the transaction closes.

The unit generated $380 million in sales and $8 million in adjusted operating income over the four quarters ended in June 2026. Perrigo expects the disposal to improve its margin profile and substantially reduce future capital requirements. It also anticipates a $275–$375 million non-cash impairment in the fourth quarter of 2026, when infant formula moves into discontinued operations. The maximum sale value is therefore neither guaranteed proceeds nor an immediate cash inflow.

Sources:

• PR Newswire