Apollo Global Management in Talks to Acquire Johnson & Johnson’s DePuy Synthes Orthopedics Unit
Apollo Global Management (NYSE:APO) is reportedly in advanced discussions with Johnson & Johnson (NYSE:JNJ) for the potential acquisition of its orthopedics business, DePuy Synthes. The deal could value the unit at nearly $20 billion, based on Bloomberg reporting cited by Reuters. J&J generated $9.3 billion from this segment in 2025, making it a significant part of both companies' portfolios. For Apollo, acquiring an established medical-device business with recurring demand offers opportunities for operational improvements and margin expansion. The proposed valuation implies a price-to-sales multiple of about 2.2x, which could allow room for value creation through portfolio rationalization or growth initiatives. J&J is also considering spinning off the unit publicly as part of its broader strategy to refocus on higher-growth areas like oncology and immunology. However, Apollo faces risks including litigation exposure from DePuy Synthes’ hip-replacement lawsuits and execution challenges in a specialized industry requiring regulatory approvals and surgeon adoption. J&J could benefit by accelerating portfolio transformation while receiving an upfront cash inflow.
Topics: Apollo Global Management DePuy Synthes Johnson & Johnson Medical Devices Orthopedics