A global maker of consumer self-care products and pharmaceuticals is exiting its businesses in Brazil and Mexico.
Dublin-based Perrigo Company — which has its North American headquarters in Allegan until the planned move to Grand Rapids next year — said earlier this month it reached a definitive agreement to sell its Mexico and Brazil-based over-the-counter businesses to Advent International.
The transaction, which is expected to close in the second half of this year, 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,” said Murray Kessler, president and CEO of Perrigo. “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. We are pleased to have reached an agreement with Advent and look forward to ensuring a seamless transition. We thank all the Mexico and Brazil-based employees for their service to Perrigo and are confident the businesses will do well under Advent’s ownership, as these are key areas of focus for their company.”
In fiscal 2020, Perrigo realized $85 million in net sales from the Latin American businesses, which are included in the company’s Consumer Self-Care Americas segment.
The transaction is expected to be margin percentage accretive to Perrigo and the Consumer Self-Care Americas segment and has no impact on the company’s adjusted diluted earnings per share in 2021.