Perrigo Company has finalized plans to transfer ownership of its infant formula operations to MeridianMade, a US-based contract manufacturing firm, in a transaction valued at a maximum of $175 million. Under the terms, $40 million will be paid immediately, while the remaining $135 million is contingent upon meeting specified performance targets through 2030.
The move comes after Perrigo evaluated potential strategic options for the division as part of its broader initiative to prioritize its primary consumer healthcare product lines. Executives anticipate the sale will enhance profitability margins and decrease long-term capital investments.
Albert Manzone, serving as Perrigo’s interim chief executive officer, described the agreement as a key step in executing the company’s “Three-S” restructuring plan. He emphasized that the funds will be redirected toward Perrigo’s essential over-the-counter product lines, which cater to common health concerns. MeridianMade leaders Ron Belldegrun and Mia Funt stated the acquisition will help sustain production of store-brand infant formula, providing cost-effective nutritional alternatives for American families.
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The company will recognize a non-cash impairment charge ranging from $275 million to $375 million in Q4 2026 as part of the transaction’s accounting treatment.
The business will continue appearing in Perrigo’s financial statements for the third quarter of 2026 before being reclassified as discontinued operations starting in Q4. Completion of the deal is projected for early 2027, pending standard closing conditions and regulatory clearances.
Until the transaction finalizes, both companies will maintain separate operations. Perrigo will oversee the infant formula business during the transition period, upholding its commitments to product safety, quality standards, consistent supply chains, and customer service to facilitate a seamless handover.
