Apollo (APO.US) reportedly plans to acquire Johnson & Johnson (JNJ.US) orthopedics business, with a potential deal valued at nearly 20 billions USD.

According to Jinse Finance, citing sources familiar with the matter, global alternative asset management firm Apollo Global Management (APO.US) is in talks to acquire Johnson & Johnson's (JNJ.US) orthopedic business unit, DePuy Synthes. The deal could value the business at nearly $20 billion. The report states that an agreement could be reached in the coming weeks. It also adds that, while the business has attracted interest from several private equity firms, the pharmaceutical giant might also decide to spin off the division as a standalone public company.

Previous reports suggested that Johnson & Johnson was preparing to sell its orthopedic business unit and considered private equity firms as the most likely buyers. The potential deal comes as private equity firms show a strong interest in healthcare companies. In April this year, American Industrial Partners acquired Avanos Medical for $1.27 billion, while Blackstone (BX.US) and TPG (TPG.US) reached an agreement in 2025 to acquire women’s health-focused diagnostics firm Hologic for over $18 billion.

Johnson & Johnson’s orthopedic business unit DePuy Synthes mainly manufactures joint implants and surgical instruments, generating $9.3 billion in revenue in 2025, though its revenue grew by only 1.1%. By contrast, Johnson & Johnson’s overall revenue in 2025 grew by 6% year-on-year. Its innovative pharmaceuticals business increased by 6%, and the overall medical technology business grew by 6.1%. Within this segment, the cardiovascular business saw a revenue surge of 15.8% thanks to the strong performance of Abiomed and Shockwave Medical. The surgical business posted stable growth of 3%. Additionally, its hip replacement device products are facing thousands of lawsuits.

Meanwhile, Johnson & Johnson previously stated last year that it plans to spin off DePuy Synthes as an independent company within the next 18 to 24 months. This would mark the company’s second major split as it continues to focus on faster-growing healthcare segments.

Johnson & Johnson’s Chief Financial Officer Joe Wolk previously stated that the company is exploring multiple routes for this spin-off, primarily focusing on a tax-free separation but remaining open to other options. He also noted that the spin-off process has already started and that no further major updates on the deal are expected before mid-2026.