Johnson & Johnson explores $20 billion sale of orthopedics unit, source says

Johnson & Johnson is preparing a potential sale of its orthopedics unit, in a deal that could top $20  billion, with the company eyeing private equity firms as the most likely buyers, a source familiar with the matter told Reuters on Thursday.

The ‌company did not ⁠immediately ⁠respond to a Reuters request for comment.

J&J last year said it had planned to separate its orthopedics unit, known as DePuy Synthes, 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.


Bloomberg News first reported on this development and said J&J ⁠is assembling ‌documents and financials for DePuy Synthes before it meets with possible buyers in the coming weeks, citing people familiar ⁠with the matter.

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.

Over the years, J&J has faced thousands of lawsuits ‌tied to hip replacement devices made by the orthopedics unit.

As of February 2, the company had resolved all but 128 of nearly 10,600 claims ⁠in nationwide litigation over alleged design defects in DePuy's ASR hip replacement system.

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.