Perrigo Company (PRGO, Financial) (PRGO - $40.57 - NYSE) manufactures self-care products and over-the-counter (OTC) healthand wellness solutions. The stock was one of our top contributors in the quarter despite reporting mixed quarterly results as a couple of potential tailwinds emerged. Frist, Perrigo’s infant formula business started to accelerate in the quarter due to Abbott’s recall of numerous brands of baby formula. This recall created shortages and Perrigo is operating at full capacity to fill some of that void. Second, the company closed its acquisition of HRA in April which was ahead of its anticipated mid-year close. This acquisition adds a business with strong top-line growth and very attractive margins. Lastly, Perrigo is a likely beneficiary of this inflationary environment as consumers trade down to generic store brands with management noting it is typical to pick up a few points of market share.
From Keeley Mid Cap Dividend Value Fund's second-quarter 2022 commentary.
