Several months after debuting a new strategic roadmap, consumer health specialist Perrigo is parting ways with its business responsible for a range of popular over-the-counter skincare products.
Perrigo has agreed to sell its branded "dermacosmetics" business to Kairos Bidco—an investment vehicle overseen by private equity and investment firm KKR—for up to 327 million euros ($381 million).
The deal features 300 million euros ($349 million) in upfront cash, plus up to 27 million euros ($31 million) in potential sales milestones, Perrigo explained in a July 14 press release.
Under the transaction, Perrigo is handing over several popular skincare franchises, including ACO, Biodermal, Emolium and Iwostin. Perrigo acquired the latter two Eastern European brands, plus the non-prescription hair loss treatment Loxon, from Sanofi in 2020.
Altogether, Perrigo’s branded dermacosmetics reeled in 125 million euros ($146 million) in 2024 sales, contributing roughly 5% of the company’s operating income for the year. Perrigo said it expects the sale of the business to close in the first quarter of 2026.
The divestment aligns with the “Three-S” plan Perrigo fully unveiled at its virtual investor day in late February, the company’s chief executive, Patrick Lockwood-Taylor, said in a statement.
The plan is focused on "stabilizing," "streamlining" and "strengthening" various aspects of Perrigo's business. The company is specifically aiming to reinforce its consumer self-care business in the Americas, simplify its international product portfolio and prioritize its most lucrative products via investments, R&D and marketing pushes, according to a recent company presentation.
While Perrigo’s Three-S plan was only finalized in early 2025, the company has been working to reinvent itself since Feb. 2024, when the Ireland-based consumer health outfit rolled out a separate initiative dubbed Project Energize. That “investment and efficiency” program has been designed to deliver annual savings between $140 million and $170 million by 2026.
Under the efficiency drive, Perrigo noted last year that it planned to sideline around 6% of its total workforce, which stood at around 9,000 employees in early 2024. Since launching the program, Energize has delivered annual savings of approximately $159 million, with $20 million of that reinvested by the company, Perrigo said in its first-quarter earnings report in early May.