Abbott plans to spin off its $8.5 billion Nutrition business, home of Similac and Ensure

Abbott plans to split off its Nutrition business, the maker of Similac infant formula and Ensure shakes, into a separate publicly traded company, the health-care company said Wednesday.

The new company would start life with about $8.5 billion in annual sales, roughly 16,000 employees and 14 manufacturing sites, according to a news release Abbott filed with an 8-K. Its brands include Similac, PediaSure, Pedialyte, Glucerna and Ensure.

Abbott intends to carry out the separation by distributing shares of the Nutrition company to its own shareholders, who would then own stock in both businesses. The transaction is intended to be tax-free for U.S. federal income tax purposes, and Abbott expects to complete it by the end of 2027.

"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," Chairman and CEO Robert Ford said in the release.

What stays and what goes

After the split, Abbott would have sales of about $42 billion and about 106,000 employees, with businesses in cardiovascular and neuromodulation devices, biowearables, diagnostics and established medicines. The company said the remaining Abbott will have accelerated sales growth and an expanded margin profile.

Daniel Salvadori, Abbott's executive vice president and group president for Established Pharmaceuticals and Nutritional Products, will become CEO of the new Nutrition company.

Dividend and guidance

Abbott said it expects the combined dividend paid by Abbott and the new Nutrition company to equal Abbott's dividend at the time of the separation.

The plan will not affect Abbott's 2026 guidance or the 2027 guidance it plans to give in January, the company said. It expects to book one-time charges tied to the transaction before the separation and will quantify them later.

The deal still needs regulatory approvals, an effective Form 10 registration statement and final approval from Abbott's board. The Nutrition business will keep operating as part of Abbott during the process.

Abbott said it would discuss the separation on its third-quarter earnings call Wednesday morning. Goldman Sachs is serving as financial adviser and Wachtell, Lipton, Rosen & Katz as legal counsel.

By the numbers

• Nutrition annual sales: about $8.5 billion
• Remaining Abbott sales: about $42 billion
• Nutrition employees: about 16,000; manufacturing sites: 14
• Expected completion: by end of 2027

Sources

1. Abbott Laboratories, Form 8-K (Item 8.01) with Exhibit 99.1 news release, filed Oct. 21, 2026, accession 0001104659-26-117587

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.