Weekly Recap: Infant formula sale and lower future capital spending

What happened

Perrigo agreed to sell its infant formula business for up to $175 million, including $40 million upfront and up to $135 million in payments through 2030. The deal is expected to close in the first half of 2027 and is expected to significantly reduce future capital spending. The company also approved a $0.29 quarterly dividend.

Confirmed

Global impact / market context

Selling the business could reduce the money Perrigo needs to invest in its operations, leaving more cash available for other priorities. The sale proceeds and dividend also affect cash flows, but the timing and final amount depend on closing and payments under the deal.

Analyst inference

Canaccord maintained its Buy rating and raised its price target to $19 from $17, while Perrigo approved a $0.29 quarterly dividend. These are analyst and company signals, not guarantees of improved results; the sale is not expected to close until 2027.

Confirmed

What to watch

1. Whether the sale closes in the first half of 2027, as expected, and whether the transaction terms or timing change before completion. Confirmed
2. How much of the up-to-$135 million in payments Perrigo ultimately receives through 2030, since those payments are not all upfront. Confirmed
3. Whether lower future capital spending supports Perrigo’s cash available for operations or other priorities, without weakening its ability to run the remaining business. Analyst inference

Evidence

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