Abbott Park, Illinois, USA, October 21, 2026
Abbott has announced plans to separate its global Nutrition business into an independent, publicly traded company, marking a major strategic restructuring for the healthcare group. The planned transaction is intended to allow both businesses to pursue distinct growth strategies, allocate resources more effectively and focus on their respective markets. The new Nutrition company is expected to generate approximately $8.5 billion in annual sales and will include well-known brands such as Similac, PediaSure, Pedialyte, Glucerna and Ensure. Abbott expects to complete the separation by the end of 2027, subject to regulatory approvals and other customary conditions. Under the proposed structure, Abbott shareholders will receive shares in the independent Nutrition company and retain their shares in Abbott, giving them ownership interests in both businesses following completion.
Abbott Plans Independent Nutrition Company
The planned separation reflects Abbott’s strategy to position its businesses around different market opportunities and investment priorities. According to the company, the Nutrition business has significant opportunities in the expanding healthy nutrition market, including infant, pediatric, medical and adult nutrition. Operating independently would allow the business to direct its resources toward product innovation, commercial initiatives and long-term growth priorities. The new company is expected to have approximately 16,000 employees and 14 manufacturing sites, providing it with an established global operating footprint across developed and emerging markets. Its product portfolio will be supported by scientific research and healthcare professional recommendations, according to Abbott. The business will continue operating within Abbott throughout the separation process, helping maintain continuity while regulatory, legal and operational requirements are addressed. The proposed transaction represents a significant corporate development in the healthcare and nutrition sectors, rather than a product approval or clinical research milestone.
Similac, Ensure and Other Leading Brands Included
The independent Nutrition company will bring together Abbott’s established brands across several nutrition categories. Similac serves the infant nutrition market, while PediaSure focuses on pediatric nutrition. Pedialyte provides products designed to help manage hydration, and Glucerna is positioned in nutrition products for people managing diabetes. Ensure is Abbott’s adult nutrition supplement brand. These products give the planned company a broad presence across different life stages and nutritional needs. Abbott has continued to develop its portfolio in response to consumer preferences and healthcare trends. The company reported ten Nutrition product launches during the first half of 2026, including a high-protein Ensure shake containing 42 grams of protein, a Similac ready-to-feed liquid infant formula made with whole milk, and dye-free Pedialyte products. As a standalone business, Nutrition would have the opportunity to align investment and commercial decisions more directly with consumer health, metabolic health, prevention and wellness trends. The separation is intended to create a more focused business structure, although future performance will depend on market conditions, competition and the company’s ability to execute its strategy.
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Abbott to Focus on Medical Devices, Diagnostics and Medicines
Following the planned separation, Abbott expects to retain approximately $42 billion in annual sales and about 106,000 employees. Its continuing business will focus on medical devices, diagnostics, biowearables and established pharmaceuticals. Abbott identified cardiovascular and neuromodulation devices, laboratory and point-of-care diagnostics, cancer diagnostics and established medicines as important areas for its future portfolio. The company expects the separation to support an expanded margin profile and accelerated sales growth by allowing its remaining businesses to concentrate on innovation-driven healthcare markets. However, these outcomes are expectations rather than guaranteed results. Abbott also stated that the planned separation will not change its 2026 guidance or the 2027 guidance it intends to provide in January 2027.
The transaction is expected to be completed through a distribution of shares in the independent Nutrition company to Abbott shareholders and is intended to qualify as a tax-free separation for U.S. federal income tax purposes. Completion remains subject to regulatory approvals, an effective registration statement on Form 10 and final approval by Abbott’s board of directors. Abbott expects to incur one-time transaction-related charges before the separation, with details to be provided later. Daniel Salvadori, currently an Abbott executive vice president and group president, is expected to become chief executive officer of the new Nutrition company. The planned separation is a major portfolio restructuring that could reshape Abbott’s business focus while establishing a standalone global nutrition company.
Source: Abbott press release
