Feb 19 (Reuters) – Johnson & Johnson is preparing a potential sale of the orthopedics unit that it has been planning to separate, with big buyout firms already circling, Bloomberg News reported on Thursday, citing people familiar with the matter.
The business, known as DePuy Synthes, could be valued at more than $20 billion in a sale, according to Bloomberg.
The company did not immediately respond to a Reuters request for comment.
J&J last year said it had planned to separate its orthopedics business into a standalone company within the next 18 to 24 months, marking its second major spinoff in two years as it sharpens focus on higher-growth healthcare segments.
J&J is assembling documents and financials for DePuy Synthes before it meets with possible buyers in the coming weeks, Bloomberg reported.
Several large private equity firms are considering teaming up to potentially buy out the unit, Bloomberg said, adding that the sale could also draw interest from rival medical device players.
J&J’s orthopedics unit makes hip, knee and shoulder implants, surgical instruments and other products and generated $9.3 billion in sales in 2025.
The company’s chief financial officer, Joe Wolk, previously said J&J was exploring multiple paths for the separation, with a primary focus on a tax-free spinoff, but remained open to other options.
He had added that the separation process was already underway, and does not expect further material updates on the transaction until mid-2026.
(Reporting by Sneha S K in Bengaluru; Editing by Maju Samuel)
