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Stock Markets February 19, 2026

Johnson & Johnson Advances Preparations to Sell DePuy Synthes; Potential Price Tag Tops $20 Billion

Company readies financial package as buyout firms and device rivals circle orthopedics unit slated for separation

By Jordan Park JNJ
Johnson & Johnson Advances Preparations to Sell DePuy Synthes; Potential Price Tag Tops $20 Billion
JNJ

Johnson & Johnson is preparing to market its orthopedics division, DePuy Synthes, a business it has been planning to separate. Reports indicate private equity firms and rival medical device makers are assessing bids, with the unit potentially valued at more than $20 billion. J&J is assembling documentation and financials ahead of meetings with prospective buyers, while previously signaling a preference for a tax-free spinoff as the primary path for separation.

Key Points

  • Johnson & Johnson is preparing to potentially sell its orthopedics unit, DePuy Synthes, and is assembling documents and financials before meeting possible buyers.
  • The business could be valued at more than $20 billion, and generated $9.3 billion in sales in 2025.
  • Large private equity firms may team up to bid, and rival medical device companies could also show interest; J&J has previously indicated a tax-free spinoff as its primary separation option.

Johnson & Johnson is moving forward with preparations for a potential sale of its orthopedics division, DePuy Synthes, according to a report that cited people familiar with the matter. Large buyout firms are among the interested parties, and the business could fetch in excess of $20 billion if it is put on the market.

The company is compiling documents and financial statements for DePuy Synthes as it plans meetings with prospective buyers in the coming weeks. Multiple large private equity firms are reportedly considering forming partnerships to mount a bid for the unit, and the process could also draw interest from competing medical device manufacturers.

DePuy Synthes manufactures hip, knee and shoulder implants, surgical instruments and other related products. The orthopedics business generated $9.3 billion in sales in 2025, according to the information released.

Last year, Johnson & Johnson announced plans to carve out its orthopedics business into a standalone company within the next 18 to 24 months, representing the corporation's second significant spinoff in two years as it narrows its focus on higher-growth segments of healthcare. The company did not immediately respond to a Reuters request for comment.

Joe Wolk, Johnson & Johnson's chief financial officer, has previously said the company is weighing multiple routes for the separation, with a tax-free spinoff identified as the primary option. He also noted that the separation is already in progress and that he did not expect any further material updates on the transaction until mid-2026.

Context and near-term steps

J&J's current activity centers on preparing a formal packet of financials and related documentation for DePuy Synthes. Those materials are expected to support initial discussions with potential buyers scheduled over the coming weeks, as the company explores sale and separation pathways while continuing its previously announced timeline for a standalone orthopedics entity.

Market and strategic implications

The potential divestiture would mark another major structural change for Johnson & Johnson and could reshape competitive dynamics within medical devices, particularly in the orthopedics sector. Interest from buyout firms, sometimes in consortiums, as well as from rival device makers, reflects the strategic and financial value attached to established implant and surgical-instrument portfolios.

Risks

  • Timing uncertainty - J&J's CFO said no further material updates are expected until mid-2026, leaving the timetable for any transaction unclear - this affects investors and counterparties in healthcare and financial markets.
  • Competitive and bidding risk - potential interest from private equity consortia and rival device makers could complicate the sale process and influence valuation outcomes - the medtech and private equity sectors are directly impacted.
  • Strategic pathway uncertainty - while a tax-free spinoff is the primary focus, the company remains open to other routes, leaving the final structure and tax implications unresolved - this has ramifications for corporate finance and shareholder outcomes.

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