Johnson & Johnson is preparing a potential sale of its orthopedics unit, DePuy Synthes, in a transaction that could exceed $20 billion, according to a source cited by Reuters.
The company is said to be positioning private equity firms as the most likely buyers, although it has not publicly commented on the report.
Last year, J&J announced plans to separate the orthopedics business into a standalone company within 18 to 24 months as part of its broader strategy to sharpen focus on higher growth healthcare segments, marking what would be its second major spinoff in two years.
According to Bloomberg, the company is assembling detailed financial documents ahead of potential meetings with interested parties in the coming weeks. Several large private equity firms are reportedly considering teaming up to pursue the asset, though interest from strategic medical device companies could also emerge.
DePuy Synthes remains a major player in orthopedics, producing hip, knee and shoulder implants, surgical instruments and related products, and generated approximately $9.3 billion in revenue in 2025.
The business also carries some historical legal overhang: Johnson & Johnson has faced thousands of lawsuits related to alleged defects in DePuy’s ASR hip replacement system, and as of February 2 had resolved all but 128 of roughly 10,600 claims in nationwide litigation.
Chief Financial Officer Joe Wolk previously indicated the company is evaluating multiple separation paths, with a tax-free spin-off as the primary focus while remaining open to alternatives, and said no further material updates are expected before mid-2026.
About DePuy Synthes
DePuy Synthes delivers one of the world’s most comprehensive orthopaedics portfolios, helping restore mobility and improve quality of life for patients. Our solutions span joint reconstruction, trauma, craniomaxillofacial, spine, sports medicine, veterinary and enabling technologies. Through deep collaboration with surgeons and care teams, we design orthopaedic solutions that support better outcomes, enhance surgical performance, and meet the evolving needs of modern healthcare. Our purpose is simple and enduring: to help people move, heal, and live better. Website: https://www.jnjmedtech.com/en-US/companies/depuy-synthes