Apollo Global Management Inc. is in discussions to acquire Johnson & Johnson's orthopedics unit, DePuy Synthes, in a deal that could value the business at close to $20 billion. Johnson & Johnson has been planning to separate the unit, which generated $9.3 billion in 2025 but faces thousands of lawsuits over its hip replacement devices, to focus on higher-growth healthcare segments. The potential transaction highlights a broader trend of private equity interest in the healthcare sector.
Apollo-J&J orthopedics acquisition talks
- ▪Apollo Global Management Inc. is in discussions to acquire Johnson & Johnson's orthopedics unit, DePuy Synthes, in a deal that could value the unit at close to $20 billion
- ▪An agreement between Apollo Global Management Inc. and Johnson & Johnson regarding the acquisition of DePuy Synthes could be reached within several weeks of September 11, 2026
- ▪As of September 11, 2026, Apollo Global Management Inc. and Johnson & Johnson did not immediately respond to requests for comment regarding the potential acquisition talks
DePuy Synthes separation strategy
- ▪Johnson & Johnson announced in 2025 that it planned to separate DePuy Synthes into a standalone company within 18 to 24 months to focus on higher-growth healthcare segments
- ▪Johnson & Johnson has been exploring multiple paths to separate its orthopedics unit, DePuy Synthes, including a tax-free spinoff into a standalone publicly traded company or a direct sale
- ▪Johnson & Johnson Chief Financial Officer Joe Wolk stated that the separation process for DePuy Synthes was underway and did not expect further material updates until mid-2026
Private equity healthcare deal trend
- ▪Blackstone and TPG agreed to acquire the women's health-focused diagnostic company Hologic for over $18 billion in 2025
- ▪The potential acquisition of DePuy Synthes by Apollo Global Management Inc. follows American Industrial Partners' $1.27 billion acquisition of Avanos Medical in April 2026
DePuy Synthes financial performance and legal challenges
- ▪Johnson & Johnson's orthopedics unit, DePuy Synthes, has faced thousands of lawsuits tied to its hip replacement devices
- ▪Johnson & Johnson's orthopedics unit, DePuy Synthes, generated $9.3 billion in revenue in 2025
Debatable claims
- ▪Regulators should block private equity acquisitions of medical device manufacturers
- ▪Johnson & Johnson must retain liability for DePuy Synthes lawsuits after divestment
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