Perrigo To Divest Latin American Businesses To Advent Int'l For Undisclosed Terms - Quick Facts

(RTTNews) - Wellness products maker Perrigo Co. plc (PRGO) announced Tuesday that it has reached a definitive agreement to sell its Mexico and Brazil-based over-the-counter (OTC) businesses to Advent International. Financial terms were not disclosed.

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.

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 earnings per share in 2021.

Following a strategic review, Perrigo concluded that it does not have sufficient scale in its Latin American businesses, which are dilutive to the Company's '3/5/7' growth algorithm. The company decided to exit the business as the path to improving margins in these regions would be further dilutive for the foreseeable future.