Perrigo Company plc (NYSE: PRGO), an Ireland-based global provider of consumer self-care products, announced on Monday that it has signed an agreement with Kairos Bidco AB, an investment vehicle managed by global investment firm KKR (NYSE:KKR), to sell its Dermacosmetics branded business.

The agreed purchase price is up to EUR327m, including EUR300m in upfront cash and up to an additional EUR27m contingent on the achievement of net sales milestones over the next three years.

This transaction is part of Perrigo's Three-S plan to Stabilize, Streamline and Strengthen the organisation, honing its strategic focus to invest in its 'high-grow', high-return opportunities. Brands within this proposed transaction include ACO, Biodermal, Emolium and Iwostin.

Net proceeds from the transaction will be directed towards Perrigo's previously announced capital allocation priorities, including further strengthening the company's balance sheet and supporting long-term value creation.

Subject to customary closing conditions, including regulatory approvals and consultation with works council, the transaction is expected to close in the first quarter of 2026.

In 2024, Perrigo's Dermacosmetics branded business generated approximately EUR125m in net sales and represented approximately 5% of the company's adjusted operating income.