Apollo Rumored to Be in Talks for $20 Billion Acquisition of J&J's Orthopaedics Unit
Private equity firm Apollo Global Management is reportedly considering a nearly $20 billion acquisition of Johnson & Johnson’s orthopaedics business, DePuy Synthes. According to Bloomberg sources, the talks are non-binding and could result in an agreement within weeks or be abandoned if no deal materializes. The unit has attracted interest from multiple private equity firms, with Apollo potentially making this its largest healthcare investment yet. Johnson & Johnson announced plans to spin off DePuy Synthes in 2025 as part of a strategic shift toward high-growth markets. Despite generating $9.3 billion in sales last year, the unit faces challenges including rising competition and regulatory costs tied to implant safety issues. Analysts suggest that J&J may be undervaluing the business with an estimated two times revenue multiple. GlobalData analyst Andrew Thompson notes a potential bid from another private equity group or consortium is possible but sees limited likelihood of bids from public companies like Stryker or Zimmer due to regulatory hurdles and market dominance concerns.
Topics: Healthcare Medical Devices Private Equity