Abbott plans to spin off $8.5 billion Nutrition business by end of 2027

The unit, home to Similac, Pedialyte and Ensure, will separate as a tax-free share distribution pending regulatory and board approval

Abbott Laboratories plans to separate its global Nutrition business into an independent, publicly traded company with about $8.5 billion in annual sales. The business includes Similac, PediaSure, Pedialyte, Glucerna and Ensure.

The separation is intended to be a tax-free distribution of shares to Abbott shareholders. Abbott expects it to be completed by the end of 2027, subject to regulatory and board approval.

Daniel Salvadori, currently executive vice president and group president of Established Pharmaceuticals and Nutritional Products, will become chief executive of the new Nutrition company. Abbott will retain a portfolio with about $42 billion in sales, spanning diagnostics, medical devices and pharmaceuticals.

The move separates a slower growing, lower margin consumer nutrition franchise from the businesses that have driven Abbott's growth, following a pattern seen across diversified health care companies that have broken apart in recent years so investors can value each segment on its own terms. A standalone nutrition company built around Similac, Pedialyte and Ensure would likely trade more like a packaged food and consumer health name, drawing a different multiple than Abbott's device and pharma lines. The multi-year timeline leaves room for execution risk, regulatory review and a management transition under Salvadori, so the structure that emerges by 2027 is not yet settled even though the direction toward separation is now explicit.