Benzinga | May 18, 2021 08:34AM EDT

Perrigo Reports Deal To Sell Its Mexican, Brazilian Over-The-Counter Businesses To Advent Int'l., No Terms Disclosed

Perrigo Company plc (NYSE; TASE: PRGO) today announced that it has reached a definitive agreement to sell its Mexico and Brazil-based over-the-counter (OTC) businesses to Advent International. This 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. Financial terms were not disclosed.



Perrigo CEO and President Murray S. Kessler commented, "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. 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 Consumer Self-Care Americas (CSCA) segment. The transaction is expected to be margin percentage accretive to Perrigo and the Consumer Self-Care Americas segment and have no impact on the Company's adjusted diluted earnings per share in 2021.