Perrigo Company completed the sale of its Mexico- and Brazil-based over-the-counter (OTC) businesses.
The Dublin-based maker of self-care products (NYSE: PRGO), which is building its North American headquarters in downtown Grand Rapids, said last week it completed the previously announced sale of the OTC businesses to Advent International.
The transaction is part of Perrigo’s margin improvement program and Project Momentum cost savings initiative.
Terms of the deal were not disclosed.
“After a thorough review, we concluded Perrigo does not have sufficient scale in its Latin American businesses, which are dilutive to the company’s ‘3/5/7’ growth algorithm,” Murray Kessler, president and CEO of Perrigo, said when the sale was announced last year. “As the path to improving margins in these regions would be further dilutive for the foreseeable future, the decision was made to exit these businesses.”
For the full year 2021, Perrigo realized $98 million in net sales from these margin dilutive businesses, which were included in the Consumer Self-Care Americas segment.
The divestiture will have an immaterial impact on the company’s adjusted diluted earnings per share in 2022, Perrigo said.