Bloomberg: J&J Explores Outright Sale of DePuy Synthes Orthopaedics Unit for More Than $20 Billion

Johnson & Johnson is exploring a possible outright sale of its orthopaedics business, DePuy Synthes, for more than $20 billion, according to a Bloomberg report cited by meddeviceguide.com. That report, which meddeviceguide.com said emerged in February 2026, opens a second path for the unit alongside the standalone spinoff J&J announced the previous October. Bloomberg reported that large buyout firms are the most likely category of buyer, with multiple private equity firms considering joint bids, according to the same account.

From spinoff announcement to sale talk

J&J said on 14 October 2025 that it intended to separate its orthopaedics business into a standalone company, to be called DePuy Synthes, within 18 to 24 months, according to pharmaphorum.com and MedTech Dive. Group chief executive Joaquin Duato said the transaction "enables Johnson & Johnson to further strengthen its focus and investment toward higher-growth areas where we can meaningfully extend and improve patient lives," and the company said there were no immediate plans for further streamlining of its current business units, according to pharmaphorum.com. After the separation, J&J intends to concentrate on six growth areas: oncology, immunology, neuroscience, cardiovascular, surgery and vision, per meddeviceguide.com.

Four months after that announcement, in February 2026, Bloomberg reported that J&J was exploring an outright sale of the unit for more than $20 billion, according to meddeviceguide.com's account of the report. That marks a shift from the original single-track spinoff plan to a dual-track process weighing both a tax-free separation and a sale.

Valuation estimates and the numbers behind them

Bloomberg Intelligence has estimated DePuy Synthes's equity value at roughly $20 billion, or about $28 billion including debt, according to meddeviceguide.com. Measured against the unit's approximately $9.3 billion in fiscal 2025 revenue, that implies a multiple of roughly 2.1x to 3.0x revenue — a range cited by Bloomberg Intelligence in the same account. MedTech Dive separately reported the orthopaedics business had sales of $9.2 billion last year, about 29% of J&J's total medical device sales, while meddeviceguide.com put the unit at roughly 10% of J&J's total revenue and about 30% of its MedTech segment.

Industry estimates compiled by meddeviceguide.com place DePuy Synthes as the largest player in orthopaedics by revenue among its peers, ahead of Stryker's ortho business at an estimated $8 billion, Zimmer Biomet at roughly $7 billion, Smith & Nephew at roughly $5 billion and privately held Arthrex at an estimated $4 billion. These figures are reported estimates from meddeviceguide.com rather than audited company disclosures.

Structure, leadership and conditions still to clear

J&J chief financial officer Joe Wolk indicated that a tax-free spinoff was the primary focus but that the company remained "open to ideas that others might have," describing a spinoff as "the most time-consuming and resource-intensive approach" and calling a public listing for DePuy Synthes "unlikely," according to meddeviceguide.com. The same account said the separation remains subject to consultations with works councils and employee representative bodies, final approval by J&J's board of directors, regulatory approvals including potential antitrust review if the unit is sold to a strategic buyer, and completion of detailed financial documentation for prospective buyers. Wolk said no "newsworthy" updates were expected until mid-2026, per meddeviceguide.com, which reported J&J is targeting mid-2027 to late 2027 for completion, consistent with the 18-to-24-month window set out in October 2025.

J&J named Namal Nawana worldwide president of DePuy to lead the business during and after the separation, according to MedTech Dive and pharmaphorum.com. Nawana is a former chief executive of Smith & Nephew and previously led J&J's spine business. Among possible strategic buyers, meddeviceguide.com named Smith & Nephew as a "smaller player that could be transformed by such an acquisition," while flagging potential antitrust scrutiny for existing orthopaedic players.

Bottom line: J&J has moved from a single-track spinoff plan announced on 14 October 2025 to what reporting describes as a dual-track process, with Bloomberg reporting in February 2026 that an outright sale above $20 billion is under exploration, according to meddeviceguide.com. Interpretation: the gap between Bloomberg Intelligence's roughly $20 billion equity estimate and the about $28 billion enterprise figure, set against roughly $9.3 billion of fiscal 2025 revenue, frames the valuation debate any buyer would face; on the reported timetable, no substantive update was expected before mid-2026, with completion targeted for mid-2027 to late 2027.