Perrigo to sell infant formula business to MeridianMade for up to $175 million

Abbott Laboratories

Thu 16:22

Oct 29 (Reuters) - Perrigo PRGO.N 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 ABT.N 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)
 ((Padmanabhan.Ananthan@thomsonreuters.com;))