Key facts
- Perrigo will sell its infant formula business to MeridianMade for up to $175 million.
- The deal includes $40 million in cash at closing and up to $135 million in performance-based payments through 2030.
- Perrigo expects the transaction to close in the first half of 2027.
Perrigo announced on Thursday that it will sell its infant formula business to MeridianMade, a privately held contract manufacturing firm, for up to $175 million. The consumer health products company is divesting the unit to sharpen its focus on over-the-counter medicines and self-care products. The transaction includes $40 million in cash at closing and as much as $135 million in additional payments tied to the business's performance through 2030. Perrigo expects the deal 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. Perrigo's infant formula unit has faced scrutiny over manufacturing quality and contamination risks. Earlier this month, Perrigo agreed to pay $10 million to settle a US class action lawsuit that accused it of conspiring with Gerber Products to restrict competition in the store-brand infant formula market. Last week, Abbott announced it is separating its nutrition business, which includes baby formulas.