Apollo Global in Advanced Talks to Buy J&J Orthopedics Unit for $20B

Apollo Global Management is in advanced talks to acquire the orthopedics division of Johnson & Johnson in a mega-deal that could exceed $20 billion, according to reports.

Potential Sale and Market Trends

Citing reports originally stemming from Bloomberg and Calcalist, the two sides could reach a formal agreement in the coming weeks. However, all options remain on the table, and the parent company might ultimately choose to spin off the unit into a separate public company given strong private equity interest. Both companies declined to comment on the reports.

"Private equity funds are increasingly identifying massive potential in healthcare and biomed assets, reshaping the medical device landscape." - Market Analyst

The current negotiations reflect a broader trend of private equity funds targeting healthcare and biomed assets. Notable recent transactions include Blackstone and TPG acquiring women's health diagnostics firm Hologic for $18 billion last year, and American Industrial Partners acquiring Avanos Medical in April for over $1.2 billion.

Financials and Strategic Shifts

Johnson & Johnson specializes in advanced surgical instruments and joint replacement implants, generating $9.3 billion in revenue in 2025. Despite robust revenue, the division carries thousands of lawsuits related to hip implant litigation.

• J&J signaled restructuring plans last year to focus on high-growth sectors.

• The division generated $9.3 billion in revenue in 2025.

• Potential sale valuation is estimated at over $20 billion.

Traditional pharma giants are increasingly offloading legacy device divisions to concentrate massive resources on high-margin, innovative sectors like biopharmaceuticals and personalized medicine. Conversely, private equity ownership may trigger aggressive operational streamlining while raising questions regarding long-term R&D investments.