Abbott Laboratories announced its intention to separate its global nutrition business into an independent, publicly traded company. The transaction is planned as a tax-free distribution of shares to Abbott shareholders, creating two companies with distinct growth strategies and investment profiles.
Key Details
- Transaction Structure: The separation is expected to be completed by the end of 2027 as a tax-free spin-off to existing shareholders.
- New Nutrition Company: The new entity will have approximately $8.5 billion in annual sales and include major brands such as Similac, PediaSure, Ensure, and Glucerna. Daniel Salvadori will become its CEO.
- Post-Separation Abbott: Abbott will focus on its higher-growth portfolio of medical devices, diagnostics, and established medicines, with projected annual sales of approximately $42 billion.