Oct 29 (Reuters) - Perrigo said on Thursday that it will sell its infant formula business to privately held contract manufacturing firm MeridianMade for up to $175 million, as the consumer health products company sharpens its focus on over-the-counter medicines and self-care products.
Here are some details:
• The transaction follows a strategic review of the infant formula business by Perrigo last year
• The deal includes $40 million in cash at closing and as much as $135 million in additional payments tied to business's performance through 2030
• Perrigo expects the transaction to close in the first half of 2027
• MeridianMade CEO Ron Belldegrun and President Mia Funt previously co-founded ByHeart, an infant formula brand that recalled its products nationwide after reports of infant botulism
• Earlier this month, Perrigo agreed to pay $10 million to settle a US class action. The suit accused it of conspiring with Gerber Products to keep new competitors out of the store-brand infant formula market, which allegedly allowed Perrigo to raise prices that retailers passed on to consumers
• Last week, Abbott announced that it is separating its nutrition business, which includes baby formulas
• Perrigo's infant formula unit has faced scrutiny over manufacturing quality and contamination risks
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Aby Jose Koilparambil)