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

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