Perrigo to Sell Dermacosmetics Business
Perrigo Co., which manufactures generic medications and consumer self-care brands such as Dermalex, Coldrex and NiQuitin, is looking to offload its dermacosmetics business, which includes the brands ACO, Biodermal, Emolium and Iwostin.
Perrigo's dermacosmetics business generated approximately $146 million in net sales in calendar year 2024, accounting for approximately 5% of Perrigo's 2024 adjusted operating income.
The transaction is expected to close in the first quarter of 2026.
Perrigo’s Growth Strategy
The proposed divestiture for up to $382 million to Kairos Bidco AB, an investment vehicle managed by KKR, is part of Perrigo’s three-year strategy to stabilize, streamline and strengthen its organization. As part of this, it is focusing on investments in high-growth, high-return areas.
Also: Learn about Perrigo’s new EVP and chief brand and digital officer
"This transaction marks another significant milestone in the execution of our 'Three-S' plan," said Patrick Lockwood-Taylor, president and CEO, in a statement. "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.”
Perrigo is undergoing a supply chain reinvention program as part of the effort to improve forecast accuracy and reduce portfolio complexity, led by its new EVP of product supply, operations strategy and transformation officer, Matt Winterman.
During the company’s investor call in May, Lockwood-Taylor said that efforts to streamline business operations have yielded significant benefits in the first quarter, including $8 million in cost savings so far from the supply chain program alone.
