Abbott Laboratories has announced its intention to separate its global Nutrition business into an independent, publicly traded company. The separation is expected to be completed by the end of 2027, subject to customary conditions including regulatory approvals and the effectiveness of a registration statement on Form 10.
The new Nutrition company will be a global leader in the healthy nutrition market with approximately $8.5 billion in annual sales. It will operate with about 16,000 employees and 14 manufacturing sites. The business will be anchored by a portfolio of iconic brands, including Ensure, PediaSure, Pedialyte, Glucerna, and Similac. Daniel Salvadori, the current executive vice president and group president of Established Pharmaceuticals and Nutritional Products at Abbott, is set to become the chief executive officer of the new entity.
Under the proposed structure, Abbott intends to separate the Nutrition business through a tax-free distribution of shares to Abbott shareholders. Following the separation, shareholders will own shares in both Abbott and the independent Nutrition company. Abbott expects the combined dividend paid by both entities to be equal to Abbott's current dividend.
After the transaction, Abbott intends to remain one of the largest, fastest-growing, and most diversified healthcare companies. The company projects sales of approximately $42 billion, supported by its core portfolio of medical devices, diagnostics, and established medicines. The planned separation will not impact Abbott's guidance for 2026 or the guidance for 2027 it plans to provide in January.
Goldman Sachs & Co. LLC is serving as the financial advisor to Abbott, while Wachtell, Lipton, Rosen & Katz is serving as legal counsel.
