Perrigo Announces Agreement to Divest Dermacosmetics Business for up to €327 Million
Perrigo (NYSE: PRGO) has announced an agreement to sell its Dermacosmetics branded business to KKR-managed Kairos Bidco AB for up to €327 million. The deal includes €300 million in upfront cash and up to €27 million in potential milestone payments tied to net sales performance over three years.
The transaction, expected to close in Q1 2026, is part of Perrigo's 'Three-S' strategic plan to Stabilize, Streamline, and Strengthen the organization. The divested brands include ACO, Biodermal, Emolium, and Iwostin, which generated approximately €125 million in net sales and about 5% of Perrigo's 2024 adjusted operating income.
Proceeds will be directed towards previously announced capital allocation priorities, including strengthening the company's balance sheet. The deal remains subject to regulatory approvals and works council consultation.
Perrigo (NYSE: PRGO) ha annunciato un accordo per la vendita del suo business Dermacosmetics al gruppo Kairos Bidco AB, gestito da KKR, per un valore fino a 327 milioni di euro. L'intesa prevede un pagamento iniziale di 300 milioni di euro in contanti e fino a 27 milioni di euro in eventuali pagamenti legati al raggiungimento di obiettivi di vendita netta nei prossimi tre anni.
La transazione, che dovrebbe concludersi nel primo trimestre del 2026, fa parte del piano strategico 'Three-S' di Perrigo, volto a Stabilizzare, Snellire e Rafforzare l'organizzazione. I marchi ceduti includono ACO, Biodermal, Emolium e Iwostin, che hanno generato circa 125 milioni di euro di vendite nette e rappresentano circa il 5% del reddito operativo rettificato di Perrigo previsto per il 2024.
I proventi saranno destinati alle priorità di allocazione del capitale già annunciate, tra cui il rafforzamento del bilancio aziendale. L'accordo è soggetto a approvazioni regolamentari e alla consultazione del consiglio dei lavoratori.
Perrigo (NYSE: PRGO) ha anunciado un acuerdo para vender su negocio de la marca Dermacosmetics a Kairos Bidco AB, gestionado por KKR, por un monto de hasta 327 millones de euros. El acuerdo incluye un pago inicial en efectivo de 300 millones de euros y hasta 27 millones de euros en posibles pagos por hitos vinculados al desempeño de ventas netas durante tres años.
La transacción, que se espera cerrar en el primer trimestre de 2026, forma parte del plan estratégico 'Three-S' de Perrigo para Estabilizar, Simplificar y Fortalecer la organización. Las marcas vendidas incluyen ACO, Biodermal, Emolium e Iwostin, que generaron aproximadamente 125 millones de euros en ventas netas y alrededor del 5% del ingreso operativo ajustado de Perrigo para 2024.
Los ingresos se destinarán a las prioridades de asignación de capital anunciadas previamente, incluyendo el fortalecimiento del balance de la empresa. El acuerdo está sujeto a aprobaciones regulatorias y a la consulta del comité de empresa.
Perrigo (NYSE: PRGO)는 KKR이 관리하는 Kairos Bidco AB에 자사의 Dermacosmetics 브랜드 사업을 최대 3억 2,700만 유로에 매각하는 계약을 발표했습니다. 이번 거래에는 선불 현금 3억 유로와 향후 3년간 순매출 실적에 따른 최대 2,700만 유로의 성과급이 포함됩니다.
이 거래는 2026년 1분기 종료를 목표로 하며, Perrigo의 'Three-S' 전략 계획인 안정화(Stabilize), 간소화(Streamline), 강화(Strengthen)의 일환입니다. 매각 대상 브랜드는 ACO, Biodermal, Emolium, Iwostin이며, 이들 브랜드는 약 1억 2,500만 유로의 순매출과 Perrigo 2024년 조정 영업이익의 약 5%를 차지합니다.
매각 수익은 이전에 발표된 자본 배분 우선순위, 특히 회사 재무구조 강화에 사용될 예정입니다. 이 거래는 규제 승인과 노동자 위원회 협의가 필요합니다.
Perrigo (NYSE : PRGO) a annoncé un accord pour vendre son activité Dermacosmetics à Kairos Bidco AB, gérée par KKR, pour un montant pouvant atteindre 327 millions d'euros. L'accord comprend un paiement initial en espèces de 300 millions d'euros et jusqu'à 27 millions d'euros de paiements potentiels liés à des jalons basés sur les performances des ventes nettes sur trois ans.
La transaction, dont la clôture est prévue au premier trimestre 2026, s'inscrit dans le cadre du plan stratégique 'Three-S' de Perrigo visant à Stabiliser, Simplifier et Renforcer l'organisation. Les marques cédées incluent ACO, Biodermal, Emolium et Iwostin, qui ont généré environ 125 millions d'euros de ventes nettes et représentent environ 5% du résultat opérationnel ajusté de Perrigo pour 2024.
Les recettes seront affectées aux priorités d'allocation de capital annoncées précédemment, notamment le renforcement du bilan de l'entreprise. L'accord reste soumis aux approbations réglementaires et à la consultation du comité d'entreprise.
Perrigo (NYSE: PRGO) hat eine Vereinbarung zum Verkauf seines Dermacosmetics-Geschäfts an Kairos Bidco AB, verwaltet von KKR, für bis zu 327 Millionen Euro bekannt gegeben. Der Deal umfasst 300 Millionen Euro an sofortiger Barzahlung und bis zu 27 Millionen Euro an möglichen Meilensteinzahlungen, die an die Nettoumsatzentwicklung über drei Jahre gebunden sind.
Die Transaktion, die voraussichtlich im ersten Quartal 2026 abgeschlossen wird, ist Teil von Perrigos strategischem 'Three-S'-Plan zur Stabilisierung, Straffung und Stärkung der Organisation. Zu den veräußerten Marken gehören ACO, Biodermal, Emolium und Iwostin, die etwa 125 Millionen Euro Nettoumsatz generierten und rund 5% des bereinigten Betriebsergebnisses von Perrigo für 2024 ausmachen.
Die Erlöse werden für zuvor angekündigte Kapitalallokationsprioritäten verwendet, einschließlich der Stärkung der Bilanz des Unternehmens. Der Deal steht unter dem Vorbehalt behördlicher Genehmigungen und der Konsultation des Betriebsrats.
- Deal value of up to €327 million strengthens company's financial position
- Strategic alignment with 'Three-S' plan to focus on core self-care categories
- Divestment of non-core assets allows focus on high-growth opportunities
- Immediate cash injection of €300 million from upfront payment
- Loss of €125 million in annual net sales from divested business
- Reduction of approximately 5% in adjusted operating income
- Extended closing timeline until Q1 2026 creates execution risk
- Subject to regulatory and works council approval, adding uncertainty
Insights
Perrigo's €327M divestiture of non-core Dermacosmetics business strengthens balance sheet while aligning with strategic refocusing efforts.
Perrigo's sale of its Dermacosmetics business to KKR for up to €327 million represents a strategic portfolio optimization that aligns perfectly with management's 'Three-S' plan (Stabilize, Streamline, Strengthen). The transaction includes
The divested business, which includes brands like ACO, Biodermal, Emolium, and Iwostin, generated approximately
This transaction accomplishes several objectives simultaneously. First, it streamlines operations by eliminating a non-core business line. Second, it strengthens the balance sheet with immediate cash infusion. Third, it enables management to concentrate resources on higher-growth, higher-return opportunities within their consumer self-care framework.
For context, Perrigo reported
The transaction is expected to close in Q1 2026, subject to regulatory approvals and works council consultation. Proceeds will be directed toward previously announced capital allocation priorities, primarily debt reduction and investments supporting long-term value creation within core consumer self-care categories.
Transaction Advances Company's 'Three-S' Plan to Streamline its Portfolio and Strengthen Focus on its 'High-Grow' Brands
Total Consideration of Up to
Expected Net Proceeds to be Directed Towards Previously Announced Capital Allocation Priorities, Including Further Strengthening the Company's Balance Sheet
"This transaction marks another significant milestone in the execution of our 'Three-S' plan," said Patrick Lockwood-Taylor, President and Chief Executive Officer. "By sharpening our focus on core self-care categories that align with our One Perrigo model, we are enhancing our ability to drive sustainable growth and deliver greater value to consumers, customers and shareholders. We believe these brands are well-positioned to thrive under new ownership, where they can benefit from dedicated focus and investment."
Inaki Cobo, Partner at KKR, said, "We are pleased to announce the acquisition of Perrigo's Dermacosmetics business, home to trusted brands and high-quality products. We've been impressed by the talented team behind its success and the strong and loyal market reputation they've built. This acquisition aligns with KKR's strategy of investing in resilient, growth-oriented consumer health platforms. We look forward to working closely with the management team to accelerate growth by leveraging our global network, operational expertise, and long-term capital, unlocking lasting value in this dynamic and important sector."
Expected net proceeds from the transaction would be directed towards previously announced capital allocation priorities, including further strengthening the Company's balance sheet and supporting long-term value creation.
This transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, including regulatory approvals and consultation with works council. In calendar year 2024, Perrigo's Dermacosmetics branded business generated approximately
Advisors
Greenhill & Co., an affiliate of Mizuho, is serving as financial advisor to Perrigo and Latham & Watkins is serving as legal advisor.
About Perrigo
Perrigo Company plc is a leading pure-play self-care company with over a century of experience in providing high-quality health and wellness solutions to consumers primarily in
Perrigo's unique business model leverages its complementary businesses, where cash-generative store brand private label offerings fuel investments for leading brands, including Opill®, Mederma®, Compeed®, EllaOne®, and Jungle Formula®.
For more information, visit www.perrigo.com.
About KKR
KKR is a leading global investment firm with approximately
KKR has deep expertise across consumer health and beauty products, with recent investments including category leaders such as Karo Healthcare (subject to closing), The Bountiful Company, Wella Company, Coty, Vini Cosmetics, KDC/ONE, and Arnott's Group.
KKR is acquiring Perrigo's Dermacosmetics branded business through its Core Private Equity strategy.
For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com.
Non-GAAP Measures
This press release contains certain non-GAAP measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts different from the most directly comparable measure calculated and presented in accordance with
These non-GAAP financial measures should be considered as supplements to the GAAP reported measures, should not be considered replacements for, or superior to the GAAP measures and may not be comparable to similarly named measures used by other companies.
Perrigo Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our, or our industry's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "forecast," "predict," "potential" or the negative of those terms or other comparable terminology.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including our ability to complete the proposed divestment of the Dermacosmetics branded business, receipt of Works Councils and regulatory approval regarding the transaction, performance by counterparties to the transaction and the likelihood of satisfying the deferred payment milestones associated with the transaction, among others. These and other important factors, including those discussed in our Form 10-K for the year ended December 31, 2024 and in any subsequent filings with the United States Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Perrigo Contact
Bradley Joseph, Vice President, Global Investor Relations & Corporate Communications,
(269) 686-3373, E-mail: bradley.joseph@perrigo.com
Nicholas Gallagher, Senior Manager, Global Investor Relations & Corporate Communications,
(269) 686-3238, E-mail: nicholas.gallagher@perrigo.com
KKR Contact
Annabel Arthur, Head of EMEA Corporate Communications,
+44 7554 919 491, E-mail: annabel.arthur@kkr.com
TABLE I | |||
Twelve Months Ended December 31, 2024 | |||
Consolidated Continuing Operations | Net Sales | Operating Income | |
Reported | $ 4,373.4 | $ 112.9 | |
As a % of reported net sales | 2.6 % | ||
Pre-tax adjustments: | |||
Amortization expense related primarily to acquired intangible assets | 229.5 | ||
Restructuring charges and other termination benefits | 113.4 | ||
Unusual litigation | 54.2 | ||
Impairment charges(1) | 88.9 | ||
Infant formula remediation | 21.7 | ||
Gain on divestitures and investment securities | (28.1) | ||
Other(2) | 16.0 | ||
Adjusted Operating Income | $ 608.5 | ||
As a % of reported net sales | 13.9 % | ||
Adjusted Operating Income in Euros(3) | € 562.60 | ||
(1) | During the twelve months ended December 31, 2024, we determined the carrying value of the Rare Diseases reporting unit net assets exceeded their fair value less costs to sell, resulting in a total impairment charge of |
(2) | Other pre-tax adjustments for the twelve months ended December 31, 2024 include expenses of |
(3) | Adjusted Operating Income was translated at the average exchange rate for the 2024 calendar year of |
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SOURCE Perrigo Company plc
FAQ
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