MeridianMade agrees to buy Perrigo's infant formula business
Perrigo is selling its infant formula business, a US contract manufacturer of store-brand formula, to MeridianMade for up to $175 million including contingent payments.
Perrigo Company plc (NYSE: PRGO) has signed a definitive agreement for MeridianMade, an American contract manufacturing platform focused on infant nutrition, to acquire its Infant Formula business. Total consideration is up to $175 million, made up of $40 million in cash at closing and up to $135 million in performance-based payments through 2030. Closing is expected in the first half of 2027, subject to customary conditions and regulatory approvals.
Perrigo said the sale follows a review of strategic alternatives and is part of the Streamline pillar of its Three-S plan. The company expects the divestiture to improve its margin profile, materially cut future capital expenditures and focus resources on its core consumer self-care portfolio. It expects a non-cash impairment charge of $275 million to $375 million in the fourth quarter of 2026.
Goldman Sachs and A&O Shearman advised Perrigo. Jefferies LLC and Sullivan and Cromwell LLP advised MeridianMade.
Deal facts
- Target
- Perrigo Infant Formula business
- Business
- Infant formula business unit of consumer self-care company Perrigo, which generated $380 million of net sales in the four quarters ended June 27, 2026
- Buyer
- MeridianMade
- Seller
- Perrigo Company plc
- Deal type
- Strategic
- Sector
- Consumer, Infant formula
- Value
- up to $175 million
- Advisers
- Goldman Sachs financial adviser to Perrigo
- A&O Shearman legal counsel to Perrigo
- Jefferies LLC financial adviser to MeridianMade
- Sullivan and Cromwell LLP legal counsel to MeridianMade
- Status
- Announced, not yet closed
- Announced
- Wednesday, October 28, 2026
Sources
- PR NewswireOct 29, 2026
- marketscreener.comOct 28, 2026
Written by Buyout Desk from the sources above. Spotted an error? Email corrections@buyoutdesk.com.