The story so far
written Oct 21What is happening
Abbott Laboratories is separating its nutrition business into a standalone company to isolate its medical device and diagnostic portfolio from the infant-formula sector 23. The transaction will create an independent entity housing the Similac and Pedialyte brands, which currently generate approximately $8.5 billion in annual sales 3. Abbott shareholders are scheduled to receive stock in both companies upon completion of the deal 3.
What to watch
Abbott expects to finish the transaction by the end of 2027 3. An executive vice president at Abbott, Daniel Salvadori, is designated to lead the new nutrition company 3.
A filing of Form 8-K with the SEC would announce the formal terms of the spin-off. Clearance or the attachment of conditions by the Federal Trade Commission or the Department of Justice would resolve antitrust requirements. The assignment of a ticker symbol and the start of trading on a U.S. exchange would mark the launch of the new entity.
Read the full brief · how we got here
How we got here
Abbott announced the spin-off plan on Oct. 21, 2026 2. The remaining Abbott business is expected to report annual sales of about $42 billion following the separation 3.
The Department of Justice closed a criminal investigation into an Abbott baby formula plant on June 29, 2026 1. On Sept. 8, 2026, the company reached an agreement with the Department of Justice to settle claims involving a 2022 formula recall 10. Abbott stated the separation process will not change its financial guidance for 2026 3.
References · 4
- 1reuters.com — US DOJ closes criminal probe into Abbott over baby formula plant, WSJ ...
- 2reuters.com — Abbott plans to spin off nutrition business, cuts 2026 sales growth ...
- 3morningstar.com — Abbott Labs to Carve Out Nutrition Business Into ... - Morningstar
- 10abbott.mediaroom.com — Abbott MediaRoom - Press Releases
What would close this
0 of 4 metTimeline
2newest firstAbbott lowers 2026 sales growth forecast to 6% amid nutrition segment spin-off announcement
Abbott Laboratories revised its full-year 2026 comparable sales growth forecast downward to approximately 6 percent on Oct. 21, 2026 1. The adjustment followed the release of third-quarter financial results and the announcement of plans to spin off the company's nutrition business by late 2027 1.
- Abbott lowered its full-year sales growth target from a previous range of 6.5 percent to 7.5 percent 1.
- The company reported third-quarter adjusted earnings per share of $1.42, meeting market consensus 1.
- The planned spin-off will create an independent, publicly traded entity for the nutrition segment, which includes brands such as Similac and Pedialyte 1.
When we started following: Abbott Laboratories to spin off nutrition business by end of 2027
Abbott Laboratories announced plans on Oct. 21, 2026, to separate its nutrition business into an independent company 23. The new entity will house the Similac infant-formula and Pedialyte electrolyte-beverage brands 3. Abbott expects to complete the transaction by the end of 2027, at which point shareholders will own stock in both companies 3. The nutrition business generates approximately $8.5 billion in annual sales, and the remaining Abbott portfolio of medical devices, diagnostics, and medicines is expected to have sales of about $42 billion 3.
Daniel Salvadori, currently executive vice president of the established pharmaceuticals and nutritional products division, is slated to lead the new company 3. Abbott stated the separation will not impact 2026 guidance 3. The U.S. Department of Justice closed a criminal probe into Abbott regarding a baby formula plant on June 29, 2026 1. On Sept. 8, 2026, Abbott reached an agreement with the Department of Justice to resolve claims related to a 2022 infant formula recall 10.