Potential $20B DePuy Synthes Sale or Spin-Off by J&J Following Q3 Results
Healthcare titan Johnson & Johnson (NYSE: JNJ) is currently exploring two potential futures for its orthopedics division, DePuy Synthes. The options on the table are a possible $20 billion sale to private equity firm Apollo Global Management, or a spin-off into a standalone publicly traded entity. This news was revealed by J&J CFO Joseph Wolk on October 13, 2026, in the wake of the company’s mixed Q3 earnings report. Despite an increase in full-year guidance, JNJ shares experienced a 6.3% drop.
DePuy Synthes, a producer of hip, knee, and shoulder implants in addition to surgical instruments, reported $9.3 billion in revenue in 2025. However, with a year-over-year growth of only 1.1%, it is the slowest-growing sector in J&J’s MedTech portfolio. If separated, the unit would become the world’s largest standalone orthopedics company.
J&J initially purchased Synthes in 2012 for $21 billion, marking its largest deal at the time. The proposed separation, slated for completion by mid-2027, aligns with J&J’s overarching strategy to concentrate on higher-growth areas such as cardiovascular and surgery. If a deal with Apollo goes through, it would be the private equity firm’s most substantial healthcare investment to date.
Source: GuruFocus