Perrigo has announced a $170 million investment to “expand and strengthen” its US infant formula manufacturing capabilities.

As part of this, Perrigo has purchased Nestlé’s Gateway infant nutrition plant in Wisconsin, as well as the US and Canadian rights to the Good Start baby formula brand.

With the investment, the company says it hopes to bolster industry capacity, provide more choice to consumers and improve access to safe and affordable infant formula.

Perrigo will invest $60 million of the total $170 million sum in expanding Gateway’s production capacity. 

Murray Kessler, Perrigo president and CEO, said: “Long before this year’s infant formula shortage, we had been pursuing options to increase capacity to meet growing demand for our infant formula in the US”.

Kessler continued: “The purchase and expansion of Gateway is the first major initiative in our recently announced ‘Supply Chain Reinvention’ programme. It solidifies our long-term manufacturing supply of infant formula in the US, increases the availability of lower-priced, high-quality infant formula to consumers, and delivers value to Perrigo shareholders.

“We are delighted to welcome the Wisconsin plant and Good Start brand teams to the Perrigo family and look forward to working with the world-class Nestlé organisation on a seamless transition.”