Abbott to separate Nutrition business, position it to scale

ABBOTT PARK, Ill. – Abbott plans to separate its nutrition business into an independent, publicly traded company with approximately $8.5 billion in annual sales.

"As we continue to shape Abbott for the future, this separation will benefit both companies, setting each one up for maximum success in its respective market," said Robert B. Ford, chairman and CEO, Abbott. "Our Nutrition business has a unique opportunity to capitalize on the growing demand for healthy nutrition, and it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities. At the same time, Abbott's core higher-growth, innovation-driven portfolio of medical devices, diagnostics and established medicines has compelling growth opportunities to improve the health and lives of people around the world."

Nutrition: A leading healthy nutrition company

Abbott says with about 16,000 employees and 14 manufacturing sites, the nutrition company will have scale across developed and emerging markets and will be well positioned to capitalize on consumer health and nutrition trends, including metabolic health, prevention and wellness.

The company’s portfolio, which encompasses infant, pediatric, medical and adult nutrition, is anchored by category-leading brands, including Ensure, an adult nutrition supplement drink; PediaSure, a pediatric nutrition supplement; Glucerna, a diabetes management nutrition brand; and Similac, an infant formula brand.

Daniel Salvadori, executive vice president and group president, Established Pharmaceuticals and Nutritional Products, will become CEO of the new nutrition company.

Transaction details

Abbott intends to separate the nutrition business through a distribution of shares of the independent nutrition company to its shareholders. Upon completion of the separation, Abbott shareholders will own shares in both Abbott and the independent Nutrition company.

Abbott expects the combined dividend to be paid by Abbott and the new nutrition company to be equal to Abbott's dividend at the time of separation. The transaction is intended to qualify as a tax-free separation for U.S. federal income tax purposes.

Abbott expects to complete the transaction by the end of 2027.

• Related: Abbott in September agreed to pay $385 million to resolve a previously disclosed investigation and lawsuit brought by the U.S. Department of Justice (DOJ), as well as lawsuits filed by certain relators and the attorneys general of several states, relating to its 2022 recall of powdered infant formula manufactured at its Sturgis, Mich., facility.