Abbott plans to spin off $8.5B Nutrition unit by end of 2027

Abbott intends to separate its Nutrition business into a standalone, publicly traded company with approximately $8.5 billion in annual sales, a move the firm expects to finalize by the end of 2027. The separation will occur via a tax-free distribution of shares to Abbott shareholders, who will subsequently hold equity in both the remaining Abbott entity and the new Nutrition company.

Robert B. Ford, chairman and chief executive officer of Abbott, stated that the split allows both entities to pursue distinct growth and value-creation strategies aligned with their specific investment identities and innovation cycles. Ford noted that the Nutrition business is better positioned as an independent company to direct strategic resources toward consumer health and nutrition trends, including metabolic health and wellness. Meanwhile, Abbott will retain its portfolio of medical devices, diagnostics, and established medicines, which Ford described as having compelling growth opportunities in higher-growth, innovation-driven areas.

The new Nutrition company will include approximately 16,000 employees and 14 manufacturing sites across developed and emerging markets. Its portfolio features category-leading brands such as Ensure, PediaSure, Glucerna, Similac, and Pedialyte. The business reported 10 product launches in the first half of 2026, including a high-protein Ensure shake with 42 grams of protein and a ready-to-feed liquid infant formula made with whole milk under the Similac brand. Daniel Salvadori, currently serving as executive vice president and group president for Established Pharmaceuticals and Nutritional Products at Abbott, is designated to become the chief executive officer of the new Nutrition company.

Following the separation, Abbott expects to maintain sales of approximately $42 billion. The remaining company will continue to hold market-leading positions in cardiovascular and neuromodulation devices, biowearables, laboratory and point-of-care diagnostics, cancer diagnostics, and established medicines. Abbott stated that the planned separation will not impact its guidance for 2026 or the guidance for 2027 that it plans to provide in January. The company expects to incur one-time charges related to the transaction during the periods preceding the separation, though these amounts have not yet been quantified.

The transaction is contingent on receiving necessary regulatory clearances, the approval of a registration statement on Form 10, and final sign-off from the Abbott Board of Directors. Abbott intends for the combined dividend paid by both companies after the split to equal Abbott’s dividend at the time of separation. Goldman Sachs & Co. LLC is serving as financial advisor to Abbott for this transaction, while Wachtell, Lipton, Rosen & Katz is acting as legal counsel. The Nutrition business will continue to operate as part of Abbott throughout the separation process. Abbott discussed the transaction during its third-quarter earnings conference call held on October 21, 2026.