Abbott to spin off US$8.5B Nutrition business behind Ensure and Similac

Abbott plans to separate its Nutrition business into an independent, publicly traded company. The new business is projected to deliver approximately US$8.5 billion in annual sales. 

Abbott’s Nutrition portfolio comprises global brands across infant, pediatric, medical, and adult nutrition. Brands include the adult supplement drink Ensure, the pediatric supplement PediaSure, the diabetes management nutrition brand Glucerna, and the infant formula brand Similac.

Abbott says the two separate companies will have different investment identities and requirements, growth profiles, and innovation cycles, and will benefit from resource and capital allocation strategies aligned to their distinct business models.

Robert Ford, chairman and chief executive officer of Abbott, says that the business has an opportunity to tap into the growing demand for healthy nutrition. He anticipates it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities.

“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,” he notes.

“Abbott’s core higher-growth, innovation-driven portfolio of medical devices, diagnostics, and established medicines has compelling growth opportunities to improve the health and lives of people around the world.”

Strategic refocusing

Abbott expects the independent Nutrition company to be better positioned to focus its resources more strategically across innovation, commercial activities, and key initiatives that advance performance and long-term value creation.

The Abbott Nutrition business portfolio includes Similac ready-to-feed infant formula.The company’s Nutrition business has launched 10 products in the first half of 2026. These included a high-protein Ensure shake featuring 42 g of protein, the Similac brand’s ready-to-feed liquid infant formula made with whole milk, launched in the US, and dye-free Pedialyte products.

The Nutrition business will continue to operate as part of Abbott throughout the separation process. The business, which has around 16,000 employees and 14 manufacturing sites, targets consumer health and nutrition trends, including metabolic health, prevention, and wellness.

Distribution of shares

Abbott will distribute shares from the new independent Nutrition company to its shareholders. Following this, Abbott shareholders will own shares in both Abbott and the independent Nutrition company.

After the separation, Abbott expects the combined dividend of the companies to match Abbott’s dividend at closing. It intends the transaction to qualify as a tax-free separation for US federal income tax purposes.

Abbott expects the transaction to be completed by the end of 2027, subject to customary conditions, including regulatory approvals, and final approval by the Abbott Board of Directors.

The separation will not impact Abbott’s guidance for 2026 or for 2027, which it plans to release in January 2027. Abbott expects to incur one-time charges related to the transaction during the periods preceding the separation, which will be quantified later.

After the separation, Abbott projects its overall sales to reach approximately US$42 billion.

Abbott’s third-quarter performance

In its third-quarter 2026 overview, the company reported that sales increased 14.5% on a reported basis and 7% on a comparable basis. It projects full-year 2026 comparable sales growth to be approximately 6%.

In August 2026, Abbott announced US FDAapproval for Libre Duo, what it calls the world’s first dual glucose-ketone biowearable sensor.

By providing real-time visibility into glucose and ketone levels, the new technology is designed to optimize the management of diabetes by detecting rising ketone levels, which can lead to diabetic ketoacidosis, a serious health condition for people with diabetes.