Perrigo completes sale of Dermacosmetics business to Karo for €305.6 million in cash

Perrigo Company plc (NYSE: PRGO) completed the sale of its Dermacosmetics business to Karo Healthcare AB on April 30, 2026. Karo paid €305.6 million in cash at closing, including €5.6 million in net working capital adjustments. Perrigo may receive up to €27.0 million more if the business meets performance thresholds over three years. The company reported the closing in a Form 8-K under Item 2.01. Eduardo Bezerra, Chief Financial Officer, signed it.

What the filing says

The 8-K recaps a Master Sale and Purchase Agreement dated July 13, 2025. The original buyer was Kairos Bidco AB, an affiliate of Karo Healthcare AB and an investment vehicle managed by an affiliate of KKR & Co., Inc. Perrigo agreed to sell all of the shares in Aco Hud Nordic AB, a Swedish private corporation, plus various assets used to make, package, sell and distribute certain cosmetic products, medicinal products and medical devices. Together these make up the Dermacosmetics branded business in Northern Europe, the Netherlands and Poland.

Before closing, Kairos assigned its rights under the agreement to Karo, as the agreement permits. On April 30, 2026, Perrigo, Kairos and Karo agreed that Kairos will transfer, and Karo will assume, all of Kairos's rights and obligations under the agreement. The agreement was filed as an exhibit to a Form 8-K on July 14, 2025, and its terms are incorporated by reference.

The terms and the cash

The press release, attached to the 8-K as Exhibit 99.1, puts total consideration at up to €332.6 million. That is the €305.6 million in upfront cash plus up to €27.0 million contingent on net sales milestones over the next three years. The 8-K lists the timing, amount and certainty of receipt of any contingent consideration among its forward-looking statements.

The release says upfront net proceeds of approximately €306 million will enable debt reduction. Brands sold in the transaction include ACO, Biodermal, Emolium and Iwostin. In calendar year 2025, the Dermacosmetics business generated approximately €120 million in net sales and represented approximately 5% of Perrigo's adjusted operating income.

Management comment and advisers

Patrick Lockwood-Taylor, President and Chief Executive Officer, calls the sale a milestone in the company's Three-S plan to Stabilize, Streamline and Strengthen the Company. He says "we expect the net proceeds from this transaction will be used primarily to reduce debt, enhancing our financial flexibility and strengthening our balance sheet."

The release says Greenhill & Co., an affiliate of Mizuho, is serving as financial advisor to Perrigo, and Latham & Watkins is serving as legal advisor. The release does not name advisers to Karo or Kairos.

About the company

Perrigo's annual report on Form 10-K, filed February 26, 2026, says Perrigo Company plc was incorporated under the laws of Ireland on June 28, 2013. It became the successor registrant of Perrigo Company, a Michigan corporation, on December 18, 2013, in connection with the acquisition of Elan Corporation, plc. The report describes Perrigo as a leading pure-play self-care company with more than a century of history.

The report shows the company's recent strain. Perrigo reported a net loss of $1.43 billion for 2025, against a net loss of $171.8 million in 2024. The 10-K ties much of the 2025 loss to impairment charges, primarily a total goodwill impairment of $1.3 billion. Cash provided by operations was $238.5 million in 2025, compared with $362.9 million in 2024. Set against that, the roughly €306 million of upfront net proceeds are meant to cut debt.

The report also says Perrigo's own-brand products compete against store brand, generic and branded health and wellness products. Its address on the 8-K is The Sharp Building, Hogan Place, Dublin, Ireland.

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