The agreement includes an upfront cash payment of $40 million, with the remaining $135 million contingent upon performance milestones met through 2030. Alongside the sale, Perrigo anticipates a non-cash impairment charge ranging from $275 million to $375 million to be recorded in the fourth quarter. The company expects to finalize the transition during the first half of next year.
In section Market Quotes
Perrigo Sheds Infant Formula Division in $175 Million Deal
Perrigo is offloading its infant-formula business to MeridianMade in a transaction valued at up to $175 million. The move marks a strategic shift for the consumer goods firm, which aims to sharpen its focus on over-the-counter self-care products while shedding the capital-intensive demands of the formula market.
MeridianMade, a contract manufacturing platform, is steered by CEO Ron Belldegrun and President Mia Funt. The pair previously co-founded ByHeart, an infant-formula producer that faced a widespread recall of its U.S. products last year following a link to a botulism outbreak.
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