KKR has signed a definitive agreement to acquire Perrigo’s dermacosmetics business for up to €327m, marking another key move in its strategy to back growth-oriented consumer health platforms.

The deal includes €300m in upfront cash and up to €27m in milestone-based payments tied to sales performance over the next three years. It follows Perrigo’s ‘Three-S’ strategic plan to streamline its portfolio and double down on core self-care categories with higher growth potential.

The business, which generated approximately €125m in 2024 sales and 5% of Perrigo’s adjusted operating income, includes brands such as ACO, Biodermal, Emolium, and Iwostin. The transaction is expected to close in Q1 2026, pending regulatory approvals and works council consultation.

Patrick Lockwood-Taylor, President and CEO of Perrigo, said, “This transaction marks another significant milestone in the execution of our ‘Three-S’ plan. By sharpening our focus on core self-care categories that align with our One Perrigo model, we are enhancing our ability to drive sustainable growth and deliver greater value to consumers, customers and shareholders.”

Inaki Cobo, Partner at KKR, added, “We’ve been impressed by the talented team behind its success and the strong and loyal market reputation they’ve built. This acquisition aligns with KKR’s strategy of investing in resilient, growth-oriented consumer health platforms.”

KKR is executing the transaction through its Core Private Equity strategy and plans to leverage its global platform and operational expertise to accelerate the growth of the acquired brands.

Perrigo has stated that net proceeds from the sale will support its broader capital allocation priorities, including further deleveraging. Greenhill & Co., an affiliate of Mizuho, acted as financial advisor to Perrigo, with legal counsel from Latham & Watkins.

The deal further underscores private equity’s continued interest in consumer health and beauty, where KKR remains an active investor.

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