Apollo Global Management is discussing a potential deal near $20 billion for DePuy Synthes.
Johnson & Johnson is in discussions with Apollo Global Management about a potential sale of its orthopedics division, DePuy Synthes. Sources familiar with the private matter indicated the talks value the unit close to $20 billion.
The healthcare conglomerate announced plans last October to separate the business, which generated $9.3 billion in sales last year making devices for hip and knee replacements. J&J could reach a deal within several weeks, though talks could fall through, another bidder could emerge, or J&J could proceed with a spinoff as a publicly traded company. Bloomberg Intelligence analyst Matt Henriksson estimated the unit could be worth $28 billion including debt.
evaluate all separation options that create shareholder value and set the DePuy Synthes business up for success long-term.
CFO Joseph Wolk noted on a July earnings call that J&J remains on track for a mid-2027 separation. Following the report, Johnson & Johnson shares were little changed at $265.58 in New York trading, giving the company a market value of $640 billion. Apollo shares rose 0.8% to $128.98, representing a market value of $76 billion.
Share prices can rise and fall. Past performance does not guarantee future results. This article is news, not investment advice.
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