Bloomberg Reports Potential Major Asset Sale by Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) is included among the 14 Best Low Volatility Dividend Stocks to Invest in.

On February 20, Bloomberg reported that Johnson & Johnson (NYSE:JNJ) is exploring a possible sale of its orthopedics unit, DePuy Synthes, as part of its broader separation plan. According to people familiar with the matter, several large buyout firms have already shown interest. The unit could be valued at more than $20 billion if a deal moves forward, though the discussions remain private.

J&J is currently preparing detailed financial documents for DePuy Synthes ahead of meetings with potential buyers in the coming weeks. Some major private equity firms are even considering joining forces to pursue an acquisition. The business could also attract interest from other medical device companies looking to strengthen their orthopedic offerings.DePuy Synthes is a significant part of J&J’s MedTech portfolio. The unit develops devices used in hip and knee replacements and generated $9.3 billion in revenue last year. Its size and established position in the market make it a valuable asset, which explains the strong early interest.

Still, the process is in its early stages. There is no certainty that J&J will ultimately sell the unit. A company representative declined to comment on the matter.J&J had already announced in October that it planned to separate its slower-growing orthopedics business within 18 to 24 months. At the time, Chief Financial Officer Joseph Wolk said the company had not decided on the exact structure of the separation. He noted that a spinoff was one option, though it would take more time and resources. He also said the company was “open to ideas that others might have,” including a sale or alternative transaction if it created greater value.

If DePuy Synthes becomes an independent company, it would stand as the largest orthopedics business globally, based on J&J’s own expectations. Bloomberg Intelligence analyst Matt Henriksson has estimated the unit could be worth about $28 billion, including debt.

Johnson & Johnson (NYSE:JNJ) operates as a global healthcare company focused on developing, manufacturing, and selling a wide range of medical products. Its business is organized around two main segments: Innovative Medicine and MedTech.

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