Perrigo Announces Strategic Review of Infant Formula Business
Perrigo Company plc (NYSE: PRGO), a major provider of consumer health products, has initiated a strategic review of its infant formula segment. The review will explore a variety of options in line with Perrigo's "Three-S" plan: Stabilize, Streamline, Strengthen.
Objectives of the Review
- Evaluate all potential alternatives for the infant formula business.
- Accelerate cash flows and reconsider the previously committed $240 million investment.
- Optimize portfolio focus and impact while maintaining disciplined capital allocation.
- Support enhanced return on invested capital and total shareholder return.
Infant Formula Business Overview
In 2025, the infant formula segment is projected to generate around $360 million in net sales. This represents about 90% of Perrigo's global Nutrition category sales, but less than 10% of Perrigo's total annual net sales. The business has stabilized operations and continues to produce high-quality formula products.
"It remains the only large-scale U.S. store brand and contract manufacturer with a meaningful near-term innovation pipeline."
Throughout the review, Perrigo will continue providing parents and caregivers with safe and affordable infant formula.
Author's Summary
Perrigo is reassessing its infant formula business to enhance cash flow and portfolio focus while maintaining its position as a leading U.S. manufacturer with ongoing innovation.