DUBLIN (dpa-AFX) - Perrigo Company plc (PRGO) has agreed to sell its Dermacosmetics branded business to Kairos Bidco AB, an investment entity managed by KKR, for up to €327 million.
The deal includes €300 million in upfront cash and up to €27 million in milestone-based earn-outs tied to net sales over the next three years.
The sale supports Perrigo's 'Three-S' strategy, Stabilize, Streamline, and Strengthen, by allowing the company to focus on high-growth, high-return self-care opportunities. Brands involved in the sale include ACO, Biodermal, Emolium, and Iwostin.
CEO Patrick Lockwood-Taylor stated the divestiture enhances the company's ability to drive sustainable growth aligned with the One Perrigo model. KKR Partner Iñaki Cobo emphasized the acquisition fits KKR's strategy of investing in resilient consumer health platforms and praised the team and brand equity behind the business.
Proceeds from the sale will go toward Perrigo's capital allocation priorities, including strengthening its balance sheet. The Dermacosmetics business generated around €125 million in 2024 net sales and accounted for roughly 5% of Perrigo's adjusted operating income. The transaction is expected to close in Q1 2026, pending regulatory and works council approvals.
Monday, PRGO closed at $27.41, or 0.44% lower on the NYSE.
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