Apollo in talks for J&J orthopaedics at reported $20B value
Apollo Global Management is in talks to acquire Johnson & Johnson's orthopaedics business at a value close to $20 billion, according to Bloomberg reporting carried by Reuters. Several private-equity firms are reported to be interested and an agreement could come within weeks. Neither J&J nor Apollo has announced a signed transaction.
Apollo's reported interest follows earlier reporting of a possible sale. J&J announced in October 2025 that it intended to separate Orthopaedics as DePuy Synthes and said the remaining MedTech portfolio would be more concentrated in faster-growing, higher-margin cardiovascular, surgery and vision markets. Its 2026 filings say it continues to explore multiple paths to complete that separation. Bloomberg had already reported in February that J&J was exploring a sale that could value the unit above $20 billion.
A spin-off would leave J&J investors owning the orthopaedics equity directly. A cash sale would transfer the business, selected liabilities and future upside to a buyer. J&J could use the proceeds to reinvest, repay debt, repurchase shares or return cash in other ways.
Taxes, liabilities and lost earnings determine the sale's value
DePuy Synthes generated about $9.3 billion of sales in 2025, putting a $20 billion transaction value at roughly 2.2 times annual sales. J&J does not separately disclose enough current operating profit for the business being separated to calculate a reliable EBITDA multiple or estimate the transaction's effect on earnings per share.
Profitability is central to J&J's rationale for the separation. In its October announcement, management said removing Orthopaedics should increase the growth rate and operating margin of the remaining company. That implies the business lowers the growth and margin of the combined MedTech portfolio even though it is large and profitable.
A sale could complete the portfolio change sooner than a public-market separation. The cash J&J retains would depend on taxes, debt and pension allocation, working capital, stranded costs and retained legal obligations. A buyer's willingness to assume liabilities can be as important as the headline price.
The reported $20 billion value remains close to the figure circulating earlier in the year. Apollo's involvement shows continued private-equity interest without establishing that bids have risen above the prior range.
To compare a sale with a spin-off, investors need the earnings J&J would give up, the liabilities a buyer would assume and the after-tax cash J&J would receive. A signed agreement could supply those details. The reported $20 billion value alone cannot establish which option would benefit shareholders more.
Sources
- Bloomberg News, Apollo talks for DePuy Synthes: https://news.bloomberglaw.com/health-law-and-business/apollo-global-is-said-in-talks-to-acquire-j-js-orthopedics-unit
- Johnson & Johnson, October 2025 separation announcement: https://www.jnj.com/media-center/press-releases/johnson-johnson-announces-intent-to-separate-its-orthopaedics-business
- Johnson & Johnson Q2 2026 Form 10-Q: https://www.sec.gov/Archives/edgar/data/200406/000020040626000153/jnj-20260628.htm
- Bloomberg Law, February 2026 report on a potential $20bn-plus sale: https://news.bloomberglaw.com/private-equity/j-j-is-said-to-explore-20-billion-plus-sale-of-orthopedics-unit