Healthcare giant Johnson & Johnson is considering selling its orthopedics division rather than spinning it off as a separate company, with the unit potentially worth more than $20 billion, Bloomberg News reported Thursday.
The division, called DePuy Synthes, has attracted attention from major private equity firms who are already evaluating a possible acquisition, according to sources familiar with the discussions.
Johnson & Johnson has not yet responded to requests for comment about the potential sale.
The pharmaceutical company announced last year its intention to split off the orthopedics division as an independent entity over the following 18 to 24 months. This move represents J&J’s second significant spinoff in recent years as the company concentrates on faster-growing areas of healthcare.
According to Bloomberg’s report, J&J is currently compiling documentation and financial records for DePuy Synthes ahead of scheduled meetings with prospective purchasers in the upcoming weeks.
Multiple major private equity companies are reportedly considering joining forces to acquire the division, though the sale might also attract competing medical device manufacturers, Bloomberg noted.
DePuy Synthes specializes in manufacturing hip, knee and shoulder replacement devices, surgical tools and related medical products, bringing in $9.3 billion in revenue during 2025.
J&J’s Chief Financial Officer Joe Wolk had previously indicated the company was evaluating various approaches for the separation, with preference given to a tax-free spinoff while keeping other alternatives available.
Wolk also mentioned that the separation process had already begun, and the company doesn’t anticipate providing significant updates on the transaction until the middle of 2026.
