Abbott Plans Tax-Free Spinoff of $8.5 Billion Nutrition Business

Abbott announced on October 21, 2026, that it intends to separate its global Nutrition business into an independent, publicly traded company through a distribution of shares to Abbott shareholders. According to Abbott’s announcement, the Nutrition business generates approximately $8.5 billion in annual sales, and the separation is expected to be completed by the end of 2027.

Under the planned structure, Abbott shareholders will receive shares of the independent Nutrition company and, upon completion of the separation, will own shares in both Abbott and the new company. Abbott expects the combined dividend paid by Abbott and the new Nutrition company to equal Abbott’s dividend at the time of separation, and the transaction is intended to qualify as a tax-free separation for U.S. federal income tax purposes.

Completion is 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. Goldman Sachs (GS ) & Co. LLC is serving as financial advisor to Abbott, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel.

New Nutrition Company

According to Abbott, the new Nutrition company will be a global leader in the healthy nutrition market, with about 16,000 employees and 14 manufacturing sites, giving it scale across developed and emerging markets. Abbott said the company will be well positioned to capitalize on consumer health and nutrition trends, including metabolic health, prevention and wellness.

The portfolio spans infant, pediatric, medical and adult nutrition and includes the Similac, PediaSure, Pedialyte, Glucerna and Ensure brands. Abbott describes Ensure as the world’s No. 1 adult nutrition supplement drink, PediaSure as the world’s No. 1 pediatric nutrition supplement, Glucerna as the world’s No. 1 diabetes management nutrition brand, and Similac as the No. 1 infant formula brand in the United States. The company said the portfolio is backed by evidence-based scientific research and healthcare professional recommendation.

The Nutrition business made 10 product launches in the first half of 2026, according to Abbott, including a high-protein Ensure shake containing 42 grams of protein, what the company called the first and only ready-to-feed liquid infant formula made with whole milk in the United States under the Similac brand, and dye-free Pedialyte products.

Daniel Salvadori, currently executive vice president and group president of Established Pharmaceuticals and Nutritional Products, will become chief executive officer of the new Nutrition company. Salvadori joined Abbott in 2014, later served as senior vice president of Established Pharmaceuticals for Latin America and as executive vice president of Nutritional Products, and was appointed to his current position in 2021. Before Abbott, he held leadership roles at CFR Pharmaceuticals and Sandoz.

Abbott After the Separation

After the transaction, Abbott will have sales of approximately $42 billion and about 106,000 employees, according to the company. Abbott said it will hold market-leading positions in cardiovascular and neuromodulation devices, biowearables, laboratory, point-of-care and cancer diagnostics, and established medicines, and that it expects accelerated sales growth and an expanded margin profile following the separation.

“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, Abbott’s chairman and chief executive officer. Ford said the Nutrition business has what he described as a unique opportunity to capitalize on growing demand for healthy nutrition and that it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities.

Abbott said the two businesses have different investment identities and requirements, growth profiles and innovation cycles, and that each company will benefit from resource and capital allocation strategies aligned to its distinct business model. The company said the separation will allow both businesses to pursue distinct growth and value-creation strategies. In a frequently asked questions section of the announcement, Abbott said it regularly examines the makeup of the company.

Abbott said 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 and said those charges will be quantified at a later date. The Nutrition business will continue to operate as part of Abbott throughout the separation process.

Abbott said it would discuss the transaction on its third-quarter earnings conference call on October 21, 2026, at 8 a.m. Central time (9 a.m. Eastern time), and that the webcast would be accessible through Abbott’s investor relations website, with an archived edition available later the same day.