Abbott Plans Spin of Nutrition Unit With $8.5 Billion in Annual Sales

The Tip Desk · October 26, 2026 · 3 min read

The healthcare company said the planned distribution would leave Abbott with a higher-growth, innovation-driven mix of medical devices, diagnostics and established medicines.

Abbott (ABT) announced its intention to separate its Nutrition business into an independent, publicly traded company with approximately $8.5 billion in annual sales, in a distribution of shares to Abbott shareholders intended to qualify as tax-free for U.S. federal income tax purposes that the company expects to complete by the end of 2027.

The transaction 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. Upon completion, Abbott shareholders would own shares in both Abbott and the independent Nutrition company. Abbott said the combined dividend paid by Abbott and the new Nutrition company is expected to equal Abbott’s dividend at the time of separation.

The company said the separation will unlock potential for both companies to pursue distinct growth and value-creation strategies. Abbott said it will retain a higher-growth, innovation-driven portfolio of medical devices, diagnostics and established medicines. After the transaction, Abbott said it will have sales of approximately $42 billion and market-leading positions in cardiovascular and neuromodulation devices, biowearables, laboratory, point-of-care and cancer diagnostics, and established medicines.

The Nutrition company, Abbott said, will be a global leader in the rapidly growing healthy nutrition market, with about 16,000 employees and 14 manufacturing sites, and a portfolio that includes Similac, PediaSure, Pedialyte, Glucerna and Ensure. Daniel Salvadori, executive vice president and group president of Established Pharmaceuticals and Nutritional Products, will become chief executive officer of the new Nutrition company.

“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, chairman and chief executive officer, Abbott.

The Nutrition business will continue to operate as part of Abbott throughout the separation process. Abbott said the planned separation will not impact its guidance for 2026 or the guidance for 2027 that it plans to provide in January, and that it expects to incur one-time charges related to the transaction during the periods preceding the separation, to be quantified at a later date. Goldman Sachs & Co. LLC is serving as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel.

Other large healthcare and consumer-goods companies have announced similar splits in 2025. Medtronic (MDT) in May 2025 announced intent to separate its Diabetes business into a standalone company through a preferred path of an initial public offering and subsequent split-off, saying the deal would create a more focused Medtronic in high-margin growth markets. Johnson & Johnson (JNJ) in October 2025 announced intent to separate Orthopaedics as DePuy Synthes, saying the step would accelerate a shift of its MedTech segment toward higher-growth, higher-margin markets. Teleflex (TFX) in February 2025 authorized management to pursue a planned separation of its Urology, Acute Care and OEM businesses through a share distribution intended to be tax-free for U.S. tax purposes, projecting RemainCo would deliver 6%+ constant-currency revenue growth post-separation. Kraft Heinz (KHC) in September 2025 approved a tax-free spin into two public companies, including a Taste Elevation and shelf-stable meals franchise with approximately $15.4 billion in 2024 net sales. Corteva (CTVA) in October 2025 approved a split of Crop Protection and Seed, with a tax-free close expected in the second half of 2026. Middleby (MIDD) in February 2025 approved a tax-free spin of Food Processing, targeted for early 2026.