Global alternative asset management company Apollo Global Management is in talks to acquire Johnson & Johnson’s (JNJ) orthopedics business unit DePuy Synthes, according to media reports citing people familiar with the matter. The deal could value the business at nearly $20 billion, and an agreement may be reached within the coming weeks. The report added that while the business has already attracted interest from multiple private equity firms, the pharmaceutical giant may also decide to spin off the unit as a standalone publicly listed company.
There were earlier reports that Johnson & Johnson was preparing to sell its orthopedics business unit and viewed private equity firms as the most likely buyers. The potential deal negotiations coincide with strong private equity interest in healthcare companies. American Industrial Partners acquired Avanos Medical for $1.27 billion in April of this year, while Blackstone and TPG reached an agreement in 2025 to acquire women’s health-focused diagnostics company Hologic for more than $18 billion.
Johnson & Johnson’s orthopedics business unit DePuy Synthes primarily manufactures joint implants and surgical instruments, generating $9.3 billion in revenue in 2025, but revenue growth was only 1.1%. By comparison, Johnson & Johnson’s overall revenue grew 6% year-over-year in 2025, its innovative medicine business grew 6%, and its medtech business overall grew 6.1%. Among them, the cardiovascular business surged 15.8% on the strong performance of Abiomed and Shockwave Medical; the surgery business grew a steady 3%. In addition, its hip replacement device products face thousands of lawsuits.
Meanwhile, Johnson & Johnson said last year that it planned to spin off DePuy Synthes into an independent company within the next 18 to 24 months. This would be the company’s second major spin-off, as it focuses its business on faster-growing healthcare segments. Johnson & Johnson Chief Financial Officer Joe Wolk previously said that Johnson & Johnson is exploring multiple paths for the spin-off, focusing primarily on a tax-free spin-off but remaining open to other options. He also added that the spin-off process has already begun, and no further major updates on the transaction are expected before mid-2026.
You may be very familiar with the name Johnson & Johnson, especially some of its consumer health products. The company actually exited that business several years ago, shifting its focus to the pharmaceutical and medtech divisions. That move—devoting all resources to the areas with the greatest potential—has proven wise, as can be seen from recent financial reports. Johnson & Johnson currently has 28 products and platforms with annual revenue exceeding $1 billion. Its innovative medicine business had eight brands achieve double-digit growth in the most recent quarter, and Johnson & Johnson is steadily advancing toward its goal of becoming the number one oncology company by 2030. The healthcare giant is also moving toward another important goal: exceeding $100 billion in revenue this year. That would be the highest revenue level in Johnson & Johnson’s history. On the dividend front, Johnson & Johnson pays $5.36 per share, with a dividend yield of 1.9%.
