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2 clusters · 7 sources · 3 days · First seen · Last updated

Abbott Laboratories nutrition business spin-off

Overview

Abbott Laboratories has announced plans to spin off its nutrition division into an independent, publicly traded company, a process expected to be completed by the end of 2027. The nutrition unit, which includes brands such as Similac, Ensure, and Pedialyte, generates approximately $8.5 billion in annual sales and employs roughly 16,000 people.

The separation is intended to allow Abbott to focus on higher-growth sectors, including medical devices, diagnostics, biowearables, and pharmaceuticals. Daniel Salvadori is slated to become the CEO of the new standalone entity.

The decision follows a period of challenges for the nutrition division, including a 2022 baby formula recall, a manufacturing plant shutdown in Sturgis, Michigan, and significant legal liabilities related to infant formula products. Following the announcement, Abbott lowered its 2026 sales growth forecast to approximately 6% and tightened its full-year adjusted profit per share forecast.

Entities

Similac · Ensure · Abbott Laboratories · Daniel Salvadori · J.P. Morgan

Timeline

  1. [BUSINESS] 3 sources
    Abbott Laboratories to spin off nutrition division

    Abbott Laboratories will spin off its $8.5 billion nutrition division into an independent company by 2027, following legal challenges and a reduced sales growth forecast.

  2. [BUSINESS] 4 sources
    Abbott Laboratories to spin off $8.5 billion nutrition business

    Abbott Laboratories will spin off its $8.5 billion nutrition business into an independent public company by late 2027 to focus on medical devices, diagnostics, and pharmaceuticals.

Sources

agronfoodprocessing.com · chemwatch.net · finchannel.com · it-boltwise.de · marketbeat.com · medicaldialogues.in · pulse2.com