Apollo Global in Talks to Acquire Johnson & Johnson’s DePuy Synthes Orthopedics Unit for Approximately $20 Billion

Sep 12, 2026 13:02 CST Updated 13:02

Johnson & Johnson

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According to media reports citing sources familiar with the matter, global alternative asset management firm Apollo Global Management (APO.US）Currently negotiating the acquisition of Johnson & Johnson's orthopedics division, DePuy Synthes,TransactionValuation of approximately $20 billion。

The deal could be reached within the coming weeks. The report further added that although the business has attracted interest from multiple private equity firms, Johnson & Johnson may also spin off the division for an initial public offering.

As early asIn October 2025, Johnson & Johnson announced that it would [action regarding] its orthopedics business, DePuy Synthes, within the next 18 to 24 months.Spin-off into a single entityIndependent company.

This February,Reuters citedSources familiar with the matter said that Johnson & JohnsonReevaluating its orthopedics businessDePuy Synthesof the divestiture plan,Currently considering exceeding200sell the division directly for hundreds of millions of dollars, rather than proceeding with the previously planned spin-off IPO.

Johnson & Johnson Chief Financial Officer Joe WolkPreviously stated,The company primarily focuses on tax-free spin-offs (Spin-off), but it remains open to other options. The current consideration of a full sale may indicate that the market’s valuation of, or acquisition appetite for, this segment exceeds expectations for a spin-off.

Moreover, poor performance was also one of the most significant factors. In 2025, Orthopedics was the weakest-performing segment within Johnson & Johnson’s MedTech sector, with a slight increase of only 1.1% to $9.26 billion.In addition, its hip replacement instrument products are facing thousands of lawsuits.

Previously,MediaLarge private equity firms are predicted to be the most likely ultimate buyers.Potential buyers are mainly large private equity firms such as KKR and Blackstone, orIt may also attract the attention of peers in the medical device industry, but due to restrictions on acquisition scale and antitrust reviews, large private equity firms are the most likely ultimate buyers.

American Industrial Partners acquired Avanos Medical for $1.27 billion this April, while Blackstone and TPG reached an agreement in 2025 to acquire Hologic, a diagnostics company focused on women's health, for over $18 billion.

This time,The likelihood of Apollo entering the market to make purchases is not insignificant; we believe that if the price is appropriate,It is not impossible to reach an agreement within weeks.

It is reported that,ApollYesAn alternative investment management firm founded in New York, USA, in 1990, with its founding team includingLeon Black, Josh Harris, and Marc Rowan, headquartered in New York, primarily engaged in alternative investment management services, covering three major sectors: credit, private equity, and real estate.

Apollin 2011 atNew York Stock ExchangeListing.As of 2026, the companyAsset size exceeds $1 trillion,is one of the world’s leading financial institutions. In August 2026, the company announced the establishment of its second headquarters in Austin, Texas, to support its strategic growth.

References:

1.https://www.iux24.com/zh-CN/news/apollo-global-in-talks-to-acquire-johnson-and-johnson-orthopedics-unit-for-twenty-billion-dollars-20260911

2.Johnson & Johnson Offloads $20 Billion Orthopedics Empire! Global Medical Giants Collectively Choose to "Sever a Limb to Survive" (MedTrend Medical Trends）

3. Other Publicly Available Information

Image Source: PharmAge Team

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