Apollo Eyes Acquisition of J&J's Orthopedics Unit in a $20 Billion Deal

Apollo Global Management is negotiating to acquire Johnson & Johnson's orthopedics unit, DePuy Synthes, valued at nearly $20 billion, according to Bloomberg News. Alternatively, the unit might be spun off as a publicly traded company. The healthcare sector sees increased private equity interest amidst ongoing strategic reorganizations.

In a significant move within the healthcare sector, Apollo Global Management is reportedly in discussions to acquire Johnson & Johnson's orthopedics division, DePuy Synthes, in a deal approaching a $20 billion valuation, according to sources cited by Bloomberg News on Friday.

Sources indicate an agreement could be on the horizon within weeks. However, J&J may also choose to spin off DePuy Synthes into a public entity, attracting interest from private equity circles. Neither Apollo nor J&J provided immediate comments to Reuters outside normal business hours.

This development follows a trend of private equity investment in healthcare, spotlighted by American Industrial Partners' acquisition of Avanos Medical and Blackstone-TPG's significant agreement with Hologic. DePuy Synthes generated $9.3 billion last year, despite facing legal challenges related to hip replacement devices. J&J's restructuring strategy remains focused on higher-growth healthcare sectors.