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.
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.
Potential Buyers and Unit Performance
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.
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.
JNJ Price Action: Johnson & Johnson shares closed up 0.78% at $246.91 on Thursday, according to Benzinga Pro data.
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