Johnson & Johnson is moving forward with plans to divest DePuy Synthes, its orthopedics division, as part of a broader portfolio restructuring strategy announced in October 2025. The company acquired the orthopedic devices manufacturer for $21.3 billion in 2011, and the unit currently generates approximately $9.3 billion in annual revenue. Industry analysts estimate the division could command a valuation between $20 billion and $28 billion in a potential sale.
Multiple private equity firms are reportedly in discussions regarding potential joint acquisition bids for DePuy Synthes, with substantive negotiations anticipated in the coming weeks. The divestiture represents a significant component of J&J's planned separation strategy, which aims to streamline its business operations and focus on core therapeutic areas.
The divestiture announcement follows J&J's stronger-than-expected fourth-quarter 2025 financial performance and raised guidance for 2026, underscoring the company's overall financial strength as it executes this strategic transition.