Abbott plans to spin off its Nutrition business into a separate listed company

what happened

Abbott said it intends to split off its Nutrition business into an independent company that will be publicly traded. According to the company, the new business will have annual sales of about $8.5 billion and a portfolio of well-known brands, including Similac, PediaSure, Pedialyte, Glucerna and Ensure.

The separation is planned as a tax-free distribution of the new company's shares to Abbott shareholders. Completion is expected by the end of 2027, subject to regulatory approvals, a Form 10 registration statement and final approval by Abbott's board. Abbott expects the combined dividend paid by the two companies to equal its current dividend. The company also said the plan will not affect its 2026 guidance or the 2027 guidance it plans to issue in January.

why it matters

For investors, the deal splits growth strategies: the core Abbott will focus on medical devices, diagnostics and medicines, while Nutrition gets its own strategy and capital. One-time charges tied to the transaction will be quantified later.

market impact

Abbott shares: structural restructuring of the group, dividend preserved, guidance unchanged

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