# Abbott Plans Tax-Free Spin-Off of Nutrition Unit With $8.5 Billion in Sales

> Abbott intends to separate its Nutrition business, with about $8.5 billion in annual sales, into a publicly traded company led by Daniel Salvadori by the end of 2027.

- Published: 2026-10-21T11:36:01+00:00
- Section: Divestitures
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-21/abbott-nutrition-business-separation
- Source: [PR Newswire](https://www.prnewswire.com/news-releases/abbott-announces-its-intention-to-separate-its-global-nutrition-business-into-an-independent-publicly-traded-company-302915339.html)

## Key takeaways

- Abbott intends to separate its Nutrition business into an independent, publicly traded company through a tax-free distribution to shareholders.
- The new Nutrition company will have approximately $8.5 billion in annual sales, about 16,000 employees and 14 manufacturing sites.
- Daniel Salvadori, currently executive vice president and group president of Established Pharmaceuticals and Nutritional Products, will become chief executive officer of the new company.
- Abbott expects to complete the transaction by the end of 2027, subject to regulatory approvals and other customary conditions.

Abbott announced on October 21, 2026 that it intends to separate its Nutrition business into an independent, publicly traded company through a tax-free distribution to shareholders. The new company will have approximately $8.5 billion in annual sales, about 16,000 employees and 14 manufacturing sites, according to [PR Newswire](https://www.prnewswire.com/news-releases/abbott-announces-its-intention-to-separate-its-global-nutrition-business-into-an-independent-publicly-traded-company-302915339.html). Abbott expects to complete the transaction by the end of 2027.

## Abbott's Plan to Separate Its Nutrition Business

Abbott will separate the Nutrition business through a distribution of shares of the independent company to Abbott shareholders. Upon completion, Abbott shareholders will own shares in both Abbott and the new Nutrition company. Abbott expects the combined dividend paid by Abbott and the new Nutrition company to equal Abbott's dividend at the time of separation. The transaction is intended to qualify as a tax-free separation for U.S. Federal income tax purposes.

"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 of Abbott. "Our Nutrition business has a unique opportunity to capitalize on the growing demand for healthy nutrition, and it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities."

Daniel Salvadori, executive vice president and group president, Established Pharmaceuticals and Nutritional Products, will become chief executive officer of the new Nutrition company. Salvadori joined Abbott in 2014 and previously held leadership roles at CFR Pharmaceuticals and Sandoz. The Nutrition portfolio includes Similac, PediaSure, Pedialyte, Glucerna and Ensure. Abbott will retain sales of approximately $42 billion after the separation.

[Mead Johnson Nutrition](https://akta.pro/company-profiles/0007bsx/mead-johnson-nutrition), a peer in infant formula, won a unanimous federal jury verdict in the Inman case on August 31, 2026, the first bellwether trial in the federal NEC litigation, according to FinancialContent Business Page. The verdict followed state court rulings in Collins and Whitfield and an appellate reversal of Watson, leaving no outstanding jury verdicts against the company.

## Earlier Abbott Moves in 2026

Abbott's Cologuard Plus received CE Mark for colorectal cancer screening in Europe on October 20, 2026, with 95% sensitivity and 94% specificity in the BLUE-C study, according to PR Newswire. Abbott launched the 'Mind Your Behind' campaign featuring Albert Pujols and Cal Raleigh on October 13, 2026 to encourage colorectal cancer screening for adults 45 and older, according to LBBOnline. On October 7, 2026, Abbott introduced Ensure Max Protein 3-in-1 Muscle Support, a powder combining 30 grams of protein, 5 grams of creatine monohydrate and 3 grams of calcium HMB, according to PR Newswire.

## Abbott's Next Steps for the Separation

Abbott expects to complete the transaction by the end of 2027, 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. The Nutrition business will continue to operate as part of Abbott throughout the separation process. Abbott expects to incur one-time charges related to the transaction during the periods preceding the separation, to be quantified at a later date.

## Companies in this story

- Abbott · website: https://www.abbott.com
- [Mead Johnson Nutrition company profile](https://akta.pro/company-profiles/0007bsx/mead-johnson-nutrition) · website: http://www.meadjohnson.com

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