Apollo Circles J&J’s DePuy Synthes in $20 Billion Deal

A $20 billion price tag would put Johnson & Johnson’s DePuy Synthes orthopedics business at roughly 2.1 times its reported annual sales, a valuation that reflects both the unit’s scale and the scarcity of large medical-device assets.

Apollo Global Management is in non-binding talks to acquire the business for close to $20 billion, according to Bloomberg, with an agreement possible within weeks. The discussions may still collapse, and other private-equity bidders have shown interest. J&J could also pursue a public-market separation instead.

DePuy Synthes generated about $9.3 billion in sales last year, according to reports. Its portfolio spans hip and knee replacements, trauma products, spine implants, sports medicine and surgical tools. J&J has described the unit as potentially the world’s largest standalone orthopedics company, serving roughly seven million patients annually across a market worth more than $50 billion.

The talks build on a restructuring plan J&J announced in October 2025. The company said it intended to separate DePuy Synthes within 18 to 24 months, allowing the remaining MedTech business to concentrate on faster-growing areas such as cardiovascular devices, surgery and vision. J&J has said the separation is targeted for completion by mid-2027.

Chief Financial Officer Joseph Wolk said in July that the company was evaluating every separation route capable of creating shareholder value and positioning DePuy Synthes for long-term growth. That leaves a sale, a spin-off or another structure on the table until a final decision is made.

For Apollo, the transaction would be a sizable deployment into a business with recurring hospital demand, established surgeon relationships and a broad installed product base. The firm’s private-equity operation reported $70 billion in assets under management as of June 30, 2026, and has emphasized corporate carve-outs as a core strategy.

The deal would also mark a sharp change in ownership for a franchise J&J built through the $20.2 billion acquisition of Synthes in 2012. Apollo would inherit the operational challenge that J&J is trying to isolate: turning a sprawling global device portfolio into a more focused company with stronger growth and margins.

J&J shares were little changed at $265.58 in Friday trading, while Apollo rose 0.8% to $128.98, according to Bloomberg.