ABBOTT PARK, Ill. — Abbott announced this week its intention to separate its Nutrition business into an independent, publicly traded company that will be a global leader in the rapidly expanding healthy nutrition market with approximately $8.5 billion in annual sales and a portfolio of iconic brands.
"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 chief executive officer, 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."
With different investment identities and requirements, growth profiles, and innovation cycles, both companies will benefit from resource and capital allocation strategies aligned to their distinct business models.
Nutrition: A leading healthy nutrition company
The Nutrition company will be a global leader in healthy nutrition with approximately $8.5 billion in annual sales. With about 16,000 employees and 14 manufacturing sites, it 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.
As an independent company, it will be better positioned to focus its resources more strategically across innovation, commercial activities and key initiatives that advance performance and long-term value creation.
Its portfolio of iconic global brands with leadership positions across infant, pediatric, medical and adult nutrition is highly differentiated in its competitive set and backed by evidence-based scientific research and healthcare professional recommendation, which drives durable organic growth at scale across channels. Abbott's Nutrition portfolio is anchored by category-leading brands, including Ensure, the world's No. 1 adult nutrition supplement drink; PediaSure, the world's No. 1 pediatric nutrition supplement; Glucerna, the world's No. 1 diabetes management nutrition brand; and Similac, the No. 1 infant formula brand in the U.S.
The Nutrition business has continued to innovate its portfolio – underpinned by consumer preferences and trends – with 10 product launches in the first half of 2026, including a high-protein Ensure shake featuring 42 grams of protein, the first and only ready-to-feed liquid infant formula made with whole milk in the U.S. under the Similac brand, and dye-free Pedialyte products.
Daniel Salvadori, executive vice president and group president, Established Pharmaceuticals and Nutritional Products, will become chief executive officer of the new Nutrition company. Mr. Salvadori joined Abbott in 2014 and has successfully led complex international businesses, as senior vice president, Established Pharmaceuticals, Latin America and executive vice president of Nutritional Products before being appointed to his current position in 2021. Prior to Abbott, he held leadership roles at CFR Pharmaceuticals and Sandoz.
Abbott: A fast-growing global health leader
Abbott will remain one of the largest, fastest growing and most diversified healthcare companies with unique breadth and scale. After the transaction, Abbott will have sales of approximately $42 billion and market-leading positions in cardiovascular and neuromodulation devices; biowearables; laboratory, point-of-care and cancer diagnostics; and established medicines. Abbott's portfolio helps people manage a range of conditions and enable informed and earlier clinical decision making.
The company remains aligned with evolving and durable healthcare trends, including an aging population, growing prevalence of chronic disease, personalized treatment and greater demand for earlier diagnosis so people can stay and get healthy. Abbott will maintain a balanced portfolio of products and payors with a strong presence across both developed and emerging markets.
Transaction Details
Abbott intends to separate the Nutrition business through a distribution of shares of the independent Nutrition company to Abbott 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, subject to customary conditions, including regulatory approvals, the effectiveness of a registration statement on Form 10 and final approval by the Abbott Board of Directors.
The planned separation will not impact Abbott's guidance for 2026 or the guidance for 2027 that Abbott plans to provide in January. Abbott expects to incur one-time charges related to the transaction during the periods preceding the separation, to be quantified at a later date.
The Nutrition business will continue to operate as part of Abbott throughout the separation process.
