Apollo Global Management is in discussions to acquire Johnson & Johnson’s orthopedics unit, DePuy Synthes, at a valuation close to $20 billion, Bloomberg reported Sept. 11, citing anonymous sources.
An agreement could be reached within weeks, though talks could end without an agreement or another bidder could emerge. J&J could also spin off the business as a publicly traded company.
DePuy Synthes, which makes devices used in hip and knee replacements, generated $9.3 billion in sales last year. J&J has said it would be the world’s largest orthopedics company if it becomes a standalone entity, the report said.
Johnson & Johnson CFO Joseph Wolk said in July that the company is on track for a mid-2027 separation, according to Bloomberg.
If the talks are successful, the acquisition would be Apollo’s biggest healthcare bet yet, following acquisitions including Brentwood, Tenn.-based Lifepoint Health and Louisville, Ky.-based Kindred Hospitals and a former majority stake in GI Alliance.
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