J&J explores $20B DePuy Synthes sale to Apollo

• Johnson & Johnson (NYSE:JNJ) is reportedly in talks to sell its DePuy Synthes orthopedics unit to Apollo Global Management for nearly $20 billion.
• DePuy Synthes generated $9.3 billion in sales last year and produces hip, knee, and trauma-related orthopedic devices.
• The transaction would be Apollo’s largest healthcare investment if completed, though talks remain ongoing and could still change.

Johnson & Johnson (NYSE:JNJ) is reportedly in discussions to sell its DePuy Synthes orthopedics business to Apollo Global Management for approximately $20 billion.

The potential transaction could be finalized within weeks, although negotiations remain ongoing and could end without a deal or attract competing bidders.

DePuy Synthes manufactures orthopedic medical devices used in procedures including hip and knee replacements, as well as instruments for repairing bones and joints.

The business generated approximately $9.3 billion in sales last year, and Johnson & Johnson has previously said DePuy Synthes could become the world’s largest standalone orthopedics company if separated.

Johnson & Johnson is also considering other separation options, including a potential public company spin-off, as it evaluates ways to maximize shareholder value.

The company announced plans in 2025 to separate DePuy Synthes into an independent entity as part of a strategy to focus more heavily on higher-growth healthcare segments.

During Johnson & Johnson’s July earnings call, CFO Joseph Wolk said the company continues evaluating “all separation options that create shareholder value” while maintaining a mid-2027 separation timeline.

The MedTech division, which includes DePuy Synthes, reported quarterly sales of $8.93 billion, up 4.5% year over year.

If completed, the Apollo transaction would represent the private equity firm’s largest healthcare investment to date.