Apollo in $20 Billion Talks to Acquire J&J Orthopedics Unit

Apollo Global Management (APO) is in advanced discussions to acquire Johnson & Johnson's (JNJ) orthopedics unit in a deal that could value the business at close to $20 billion. An agreement could be reached within weeks, though J&J is also weighing a public listing of the division as an alternative exit path.

The unit, known as DePuy Synthes, manufactures joint implants and surgical devices and generated $9.3 billion in revenue in 2025. It has attracted interest from multiple private equity firms, though it also carries significant legal liability, with thousands of lawsuits outstanding related to its hip replacement products.

The potential transaction reflects sustained buyout appetite for large-scale healthcare assets. American Industrial Partners completed a $1.27 billion acquisition of Avanos Medical in April, while Blackstone (BX) and TPG (TPG) agreed in 2025 to acquire women's health diagnostics group Hologic (HOLX) for more than $18 billion.

J&J said last year it planned to separate DePuy Synthes into a standalone company within 18 to 24 months — its second major spinoff — as the pharmaceutical and medtech conglomerate refocuses on higher-growth segments. Chief Financial Officer Joe Wolk previously indicated the company was exploring multiple separation structures, with a tax-free spinoff the primary preference, while remaining open to other options. He said the process was already underway and that no material updates were expected before mid-2026.