Perrigo agreed on 29 October 2026 to sell its infant formula business to MeridianMade for up to US$175m, of which only US$40m is payable in cash at closing.
Why MeridianMade is buying Perrigo infant formula business
Perrigo said the sale would improve its margin profile and materially reduce expected future capital expenditure as it focuses on over-the-counter medicines and self-care. MeridianMade, led by chief executive Ron Belldegrun and president Mia Funt, offers spray drying, dry blending, packaging and in-house research and regulatory capabilities.
Deal terms and financing
MeridianMade pays US$40m at closing and up to US$135m in contingent payments linked to milestones through 2030. Perrigo will take a non-cash impairment of US$275m–375m in the fourth quarter of 2026 and move the unit to discontinued operations.
Regulatory approvals and timing
Completion is subject to customary closing conditions, regulatory approvals and third-party approvals, and is expected in the first half of 2027. The businesses will operate independently until then.
Market context
Perrigo began a strategic review of the formula business on 5 November 2025, after market-share losses including the end of its Good Start brand distribution. Perrigo has long been a leading manufacturer of store-brand formula for US retailers.
