Perrigo Sells Infant Formula Unit to Focus on Self-Care
The third-largest formula manufacturer is exiting the segment to prioritize its over-the-counter consumer products.
Updated on Oct. 29, 2026 in Healthcare
Live Poll
Do you trust that new owners will maintain the quality of essential infant formula products?
Perrigo Company has reached a definitive agreement to sell its infant formula business to MeridianMade for up to $175 million. The deal allows the Grand Rapids-based company to focus on its core consumer self-care portfolio, with the transaction expected to close in the first half of 2027.
Why it matters
Perrigo is offloading its infant formula unit, the third-largest in North America, to sharpen its focus on over-the-counter self-care products. This divestiture follows a comprehensive internal review of strategic alternatives for the company's manufacturing assets.
Perrigo is selling its infant formula business for an initial $40 million, with a total potential valuation of $175 million including future performance-based earnouts. The company currently holds the position of the third-largest infant formula manufacturer across the U.S. and Canada.
The players
Perrigo Company
A manufacturer of consumer self-care and over-the-counter products with a North American headquarters in Grand Rapids.
MeridianMade
The acquiring entity that will take ownership of the infant formula manufacturing business.
The details
The agreement marks a significant pivot for Perrigo, which is moving away from formula production to concentrate resources on its consumer self-care segment. Under the terms of the deal, both companies will continue to manage their respective operations independently until the transition is finalized in 2027. Future payments are structured around specific performance targets, shifting the long-term operational risk of the formula business to MeridianMade.
Timeline
October 29, 2026: Perrigo announced the agreement to sell its infant formula business.
First half of 2027: The transaction is expected to officially close.
Market Landscape
This divestiture reflects a broader consolidation trend in the specialty manufacturing sector that has accelerated since the 2022 U.S. infant formula supply shortage. Perrigo's move signals a strategic shift away from high-regulation commodity production toward high-margin consumer self-care goods.
Operators in the manufacturing and CPG sectors should monitor how this divestiture alters supply chains for formula retailers. Business owners should review their own portfolios to determine if non-core assets are consuming resources that could be better directed toward higher-growth segments.
The takeaway
Large companies are increasingly shedding complex, highly regulated manufacturing divisions to prioritize leaner, high-margin product lines. Local operators should track this transition as a signal to re-evaluate whether their current product mix aligns with long-term capital allocation strategies.
Further reading
For more on the local sector, visit Healthcare.
Source note: This article includes information reported by WOODTV.
Live Poll
Do you trust that new owners will maintain the quality of essential infant formula products?
