• $40 million is due at closing, with up to $135 million tied to performance milestones through 2030.
• The acquisition would add Perrigo’s store-brand infant-formula business to MeridianMade’s three-facility US contract-manufacturing platform.

MeridianMade, an American infant-nutrition contract manufacturer with plants in Reading, Pennsylvania, Allerton, Iowa, and Portland, Oregon, agreed October 29 to acquire Perrigo’s infant-formula business for total consideration of up to $175 million. The proposed deal would add a supplier of store-brand formula to MeridianMade’s domestic manufacturing platform.

Perrigo would receive $40 million in cash at closing and up to $135 million tied to performance milestones through 2030. The company reported that the infant-formula business generated $380 million in net sales and $8 million in segment adjusted operating income in the trailing four quarters through June 27, a margin of about 2.1%.

MeridianMade currently offers wet mixing, spray drying, dry blending, packaging and protein-ingredient production. Its existing facilities serve infant, toddler, medical and functional nutrition programs. Perrigo says the business being sold will continue operating independently until closing, with existing customer service and supply responsibilities remaining under Perrigo during the transition.

The transaction follows Perrigo’s strategic review of the business. Under the deal, Perrigo expects a $275 million to $375 million non-cash impairment and lower future capital spending, while completion remains subject to regulatory approvals and other closing conditions in the first half of 2027. MeridianMade’s CEO and president framed the acquisition around continuity of store-brand supply.

“This acquisition is a commitment to responsible stewardship of store-brand infant formulas, which offer American families a more affordable option for safe, high-quality infant nutrition.”

Ron Belldegrun, CEO, and Mia Funt, president, MeridianMade