Abbott to spin off $8.5bn Nutrition unit

Abbott Laboratories announced on October 21, 2026, that it intends to separate its global Nutrition business into an independent, publicly traded company. The separation is planned as a tax-free distribution of shares to existing Abbott shareholders and is expected to be completed by the end of 2027, subject to customary closing conditions.

After the transaction, shareholders would own stock in both Abbott and the new Nutrition company. Abbott said it expects the combined dividend paid by the two companies to be equal to Abbott’s dividend at the time of separation, indicating an intention to maintain overall cash returns to investors.

The company stated that it anticipates incurring one-time charges associated with the transaction before the separation is finalized. These charges have not yet been quantified and will be detailed at a later date as the process advances.

The planned standalone Nutrition company is expected to have approximately $8.5 billion in annual sales, positioning it as a large, dedicated player in the global nutrition market. The business will include a portfolio of well-known brands such as Similac, Ensure, Pedialyte, PediaSure and Glucerna.

Abbott reported that the Nutrition unit will employ about 16,000 people and operate 14 manufacturing sites worldwide. This footprint underscores the global reach of the business that is being carved out into a separate public entity.

Abbott described the separation as a way to create two focused companies, while emphasizing that the transaction will be structured to qualify as a tax-free separation for U.S. federal income tax purposes.

Daniel Salvadori, currently group president of established pharmaceuticals and nutritional products at Abbott, has been appointed chief executive officer of the future Nutrition company. His selection provides identified leadership for the business ahead of its planned listing as an independent entity.

The separation remains subject to a series of customary conditions. These include obtaining necessary regulatory approvals, securing the effectiveness of a registration statement on Form 10, and receiving final approval from Abbott’s board of directors.

Abbott indicated that it will proceed through these steps over the coming year as it prepares the Nutrition unit for life as a standalone, publicly traded company, targeting completion of the process by the end of 2027.

Alongside the separation announcement, Abbott reported third-quarter 2026 revenue of about $13.01 billion. The company also updated its outlook for the full year, tightening its adjusted diluted EPS guidance range to $5.50–$5.55.

Abbott projected full-year 2026 comparable sales growth of approximately 6.0%. The company stated that the planned Nutrition spin-off will not impact its existing 2026 guidance or the 2027 guidance it intends to provide in January.

By affirming that its financial guidance remains unchanged, Abbott signaled that the separation is being managed within its current outlook while it prepares to launch the Nutrition unit as a separate public company.