Johnson & Johnson (NYSE:JNJ) is reportedly preparing for a potential sale of its orthopedics unit, DePuy Synthes, as it advances plans to separate the business.
In 2011, the medtech giant acquired DePuy Synthes for a massive $21.3 billion.
In October 2025, Johnson & Johnson said it plans to separate its Orthopedics business to enhance the strategic and operational focus.
Johnson & Johnson said it is targeting completion within 18 to 24 months.
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Bloomberg noted that at the time, CFO Joseph Wolk said the company hadn’t yet decided how to enact the split but said it was preparing for the possibility of a spinoff, the most time-consuming and resource-intensive approach. He said Johnson & Johnson was “open to ideas that others might have,” including a sale or another transaction if it resulted in greater value.
Bank of America analyst wrote, “The exit makes sense, in our view; in the long-term, DePuy Synthes should benefit from improved focus and become more competitive.”
Buyout firms have already shown interest. Bloomberg Intelligence estimates the unit could be worth about $20 billion, and $28 billion including debt.
Johnson & Johnson is currently preparing financial materials ahead of meetings with potential buyers in the coming weeks, the Bloomberg report noted. Several large private equity firms are reportedly considering joint bids.
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DePuy Synthes, which produces hip and knee replacement devices and generated $9.3 billion in annual sales, may also attract interest from strategic medical device players.
Discussions remain preliminary, and a transaction is not assured.
Johnson & Johnson reported a fourth-quarter 2025 adjusted earnings of $2.46 per share, up 20.6% year over year, beating the consensus of $2.44.
The company expects 2026 sales of $99.50 billion-$100.5 billion compared to the consensus of $98.89 billion.
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