Perrigo Company plc (NYSE: PRGO) announced on October 29, 2026, that it has entered into a definitive agreement to sell its Infant Formula business to MeridianMade, an American contract manufacturing platform focused on infant nutrition. Under the terms of the deal, MeridianMade will acquire the business for total consideration of up to $175 million. The transaction structure includes $40 million in cash paid at closing, with an additional $135 million contingent upon the achievement of future performance milestones through 2030.
The divestiture is intended to advance Perrigo’s “Three-S” plan to Stabilize, Streamline, and Strengthen the business. Perrigo management stated that the sale is expected to enhance the company’s margin profile and materially reduce future capital expenditure requirements. The company anticipates that its reported results will more closely reflect the financial profile of its Core Perrigo operations, which excludes the Infant Formula business and certain previously exited products.
MeridianMade is described as a domestic platform dedicated to the development and manufacturing of high-quality infant formula, possessing infant-grade infrastructure and operating capabilities. The company’s contract manufacturing services include spray drying, dry blending, and packaging, supported by in-house R&D and regulatory navigation. Perrigo’s Infant Formula business will continue to operate independently until the closing of the transaction, which is expected to occur in the first half of 2027. The deal is subject to customary closing conditions and regulatory approvals.
In connection with the transaction, Perrigo expects to record a non-cash impairment charge in the fourth quarter of 2026, with the charge projected to fall between $275 million and $375 million. For the trailing four quarters ended June 27, 2026, the Infant Formula business generated net sales of $380 million and segment adjusted operating income of $8 million. Goldman Sachs is serving as the financial advisor and A&O Shearman as the legal advisor for Perrigo, while Jefferies LLC is the financial advisor and Sullivan and Cromwell LLP is the legal advisor for MeridianMade.
