Perrigo Sells Infant Formula Business to MeridianMade
The Grand Rapids-based manufacturer will divest its infant formula division to focus on its core self-care portfolio.
Updated on Oct. 29, 2026 in Healthcare
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Perrigo Company has entered a definitive agreement to sell its infant formula business to MeridianMade. The transaction, which includes both an upfront cash payment and contingent future payouts, marks a shift for the firm as it prioritizes its over-the-counter self-care products.
Why it matters
The sale follows a strategic review conducted by the company to streamline its operations. By divesting the infant formula unit, the business aims to sharpen its focus on its primary consumer self-care portfolio.
The deal is valued at a maximum of $175 million, consisting of $40 million in cash at closing and up to $135 million in future performance-based payments. Perrigo currently ranks as the third-largest infant formula manufacturer in the United States and Canada.
The players
Perrigo Company
This corporation is a global provider of consumer self-care products and maintains its North American corporate headquarters in Grand Rapids.
MeridianMade
This entity is the acquiring firm that has entered into a definitive agreement to purchase the infant formula business from Perrigo.
The details
MeridianMade will take over the operations as part of the agreement to acquire the unit from the North American corporate headquarters based in Grand Rapids. Both companies plan to maintain independent operations until the deal is finalized.
Timeline
October 29, 2026: Perrigo announced the infant formula business sale agreement.
First half of 2027: The transaction is expected to close.
Market Landscape
This move reflects the broader industry trend of large corporations divesting non-core assets to streamline operations. By narrowing its focus, the company aims to strengthen its competitive positioning against other firms within the consumer self-care sector.
Consumers are unlikely to see immediate changes to product availability as the companies will continue to operate independently until the transaction closes. The shift suggests a long-term change in the company's product focus rather than an immediate change in retail pricing or brand availability.
The takeaway
Companies frequently divest business units to prioritize high-growth areas, which can lead to more specialized and efficient product development in the long run. Investors and consumers should monitor how the brand shifts its resources toward its remaining self-care portfolio following this sale.
Further reading
For more information on the evolving medical and consumer goods sector, visit the Healthcare section.
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Do you trust that new owners will maintain the quality of essential infant formula products?
