Perrigo has announced that it has entered a definitive agreement with MeridianMade, an American contract manufacturing platform dedicated to infant nutrition.
MeridianMade will acquire Perrigo’s infant formula business for total consideration of up to $175 million. The transaction consists of $40 million in cash and up to an additional $135 million contingent on the achievement of future performance milestones through 2030.
Perrigo is one of the few dominant players in the global infant formula market including Danone, Nestle and Reckitt Benckiser and Abbott Laboratories. It is the third largest manufacturer of infant formula company in the US and Canada and focuses on producing own label infant formulas for major supermarkets and pharmacy chains. i
This moves marks a major strategic shift for Perrigo into a more focused consumer self-care company. It already has a diversified portfolio of OTC products addressing essential, everyday health needs.
The agreement follows a comprehensive review of strategic alternatives for the infant formula business, the company said.
MeridianMade is a company built entirely around infant nutrition.
“Today’s announcement marks an important milestone in advancing the Streamline pillar of our Three-S plan to Stabilize, Streamline, and Strengthen the business,” said Albert Manzone, Interim President and Chief Executive Officer.
“For Perrigo, this transaction is expected to enhance our margin profile, materially reduce expected future capital expenditures, and enable us to concentrate resources on strengthening our core consumer self-care portfolio.”
He added: “Our Infant Formula colleagues have worked with tremendous dedication to enhance performance and improve operations, which has positioned Infant Formula well for its next chapter. We are confident that with its singular focus on infant nutrition and commitment to quality, safety, and continuity, MeridianMade is the right manufacturer to carry this important category forward.”
Ron Belldegrun, CEO of MeridianMade, and Mia Funt, President of MeridianMade, said: “This acquisition is a commitment to responsible stewardship of store-brand infant formulas, which offer American families a more affordable option for safe, high-quality infant nutrition. We look forward to working with the Perrigo team throughout the transition and continuing to support this critical source of infant nutrition.”
Until closing, Perrigo’s Infant Formula business and MeridianMade will continue to operate as independent companies, and Perrigo will continue to own and operate the Infant Formula business. Closing is expected in the first half of 2027. The transaction is subject to the satisfaction of customary closing conditions and regulatory approvals.
Goldman Sachs is serving as financial advisor and A&O Shearman is serving as legal advisor for Perrigo.
