Perrigo Company plc filed an 8-K press release on October 29, 2026, announcing a definitive agreement to divest its Infant Formula business to MeridianMade for total consideration of up to $175 million.

Key Highlights

  • Deal structure: Total consideration of up to $175 million, consisting of $40 million in cash at closing and up to an additional $135 million contingent on future performance milestones through 2030.
  • Expected closing: The transaction is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals.
  • Impairment charge: Perrigo expects to record a non-cash impairment charge in the fourth quarter of 2026 in the range of $275 million to $375 million.
  • Infant Formula financials: In 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.
  • Reporting change: Beginning in the fourth quarter of 2026, Infant Formula will be included in discontinued operations.
  • Capital expenditure impact: The transaction is expected to significantly reduce Perrigo's future capital expenditure requirements, according to the filing.

Perrigo Divests Infant Formula Business as Part of Three-S Streamline Strategy

According to the filing, Perrigo Company plc (NYSE:PRGO) entered into a definitive agreement to sell its Infant Formula business to MeridianMade, a domestic contract manufacturing platform focused exclusively on infant nutrition. The total consideration is up to $175 million, structured as $40 million in cash at closing plus up to $135 million in contingent payments tied to performance milestones through 2030. The company disclosed that the agreement followed "a comprehensive review of strategic alternatives for the Infant Formula business."

Perrigo described the divestiture as advancing the "Streamline" pillar of its "Three-S plan to Stabilize, Streamline, and Strengthen the business," as quoted from Interim President and Chief Executive Officer Albert Manzone. The filing states the transaction is expected to enhance Perrigo's margin profile and materially reduce expected future capital expenditures, allowing the company to concentrate resources on its core consumer self-care portfolio. Until closing, both companies will continue to operate independently, and Perrigo will retain ownership and operation of the Infant Formula business.

The filing notes that Infant Formula will continue to be reported in All In results for the third quarter of 2026, and will move to discontinued operations beginning in the fourth quarter of 2026. In connection with the transaction, Perrigo expects to record a non-cash impairment charge of between $275 million and $375 million in the fourth quarter of 2026. Net proceeds are expected to be used in accordance with Perrigo's capital allocation priorities, according to the filing. Goldman Sachs and A&O Shearman are advising Perrigo; Jefferies LLC and Sullivan and Cromwell LLP are advising MeridianMade.

What Was Disclosed

Perrigo announced a definitive agreement to divest its Infant Formula business to MeridianMade for up to $175 million, disclosed expected financial impacts including a non-cash impairment charge of $275 million to $375 million in Q4 2026, and reported that closing is targeted for the first half of 2027.