Johnson & Johnson studies 20 billion maxi divestment of orthopaedic unit
The US giant evaluates the sale of DePuy Synthes. Private equity funds on the dossier
A maxi divestment is taking shape on Wall Street. Johnson & Johnson, according to Bloomberg, is preparing a potential sale of its orthopaedics division. The company, known as DePuy Synthes, could be valued at over $20 billion in the event of a sale.
The operation being studied
J&J is collecting documents and financial data for DePuy Synthes before meeting possible buyers in the coming weeks. Several large private equity firms are considering collaborating to acquire the unit.
DePuy Synthes, which manufactures devices used for hip and knee replacements and generated sales of $9.3 billion last year, could also attract the interest of rival medical device companies, sources said.
The valuations are at an early stage and there is no guarantee that they will result in a sale of the company. In October, J&J announced plans to separate its slower-growing orthopaedic business from the rest of the company within 18 to 24 months. At the time, CFO Joseph Wolk said the company had not yet decided how to implement the split, but was preparing for the possibility of a spin-off, the most time-consuming and resource-intensive approach.
The pharmaceutical and medical technology company said that DePuy Synthes will become the largest orthopaedic company in the world if it becomes an independent company.
