(ABBOTT PARK, IL) - Abbott has announced their intention to separate its Nutrition business.
In a media release, company officials say they will separate Abbott Nutrition into an independent, publicly traded company that will be a global leader in the rapidly expanding healthy nutrition market, with approximately $8.5 billion in annual sales and a portfolio of iconic brands.
Abbott Chairman and Chief Executive Officer Robert B. Ford says as they continue to shape Abbott for the future, this separation will benefit both companies by setting each one up for maximum success in its respective market.
As an independent company, Abbott Nutrition will be better positioned to focus its resources more strategically across innovation, commercial activities and key initiatives that advance performance and long-term value creation.
Daniel Salvadori, Executive Vice President and Group President, Established Pharmaceuticals and Nutritional Produces, will become Chief Executive Officer of the new Nutrition company.
This separation comes after a very up and down four years for Abbott, which included a Federal investigation into manufacturing issues along with safety allegations at the Sturgis plant. Abbott had to pay a $385 million civil settlement in September with the U.S. Department of Justice along with state governments.
Abbott expects the transaction to be completed by the end of 2027.