Close to $20 billion is what alternative asset manager Apollo Global Management is discussing for Johnson & Johnson's orthopedics unit, DePuy Synthes, according to people familiar with the talks who asked not to be identified. At DePuy Synthes's reported $9.3 billion in 2025 sales, that figure implies a revenue multiple near 2.1x. Bloomberg Intelligence analyst Matt Henriksson has estimated the business could be valued at $28 billion including debt, placing the current bid roughly $8 billion below his estimate.
| Metric | Value | Label |
|---|---|---|
| DePuy Synthes 2025 revenue | $9.3B | Reported |
| Apollo bid | ~$20B | Reported; per people familiar |
| Revenue multiple on bid | ~2.1x | Math reconciles |
| BI valuation est. (incl. debt) | $28B | Estimated (Henriksson, Bloomberg Intelligence) |
The separation
DePuy Synthes makes devices for hip and knee replacements. J&J has said the unit would be the world's largest standalone orthopedics company if separated. The conglomerate announced the separation plan last October. On J&J's July earnings call, CFO Joseph Wolk said J&J is pleased with its progress and remains on track for a mid-2027 separation, while continuing to evaluate all options that create shareholder value and position DePuy Synthes for long-term success.
A deal at the discussed valuation would be Apollo's largest healthcare investment yet. The asset is seen as stable, giving Apollo a sizable capital deployment opportunity, the people said. Several private equity firms have shown interest; Bloomberg reported in February that multiple buyout firms were considering a consortium bid. An agreement could come within several weeks, per the people familiar, though talks could still collapse, another bidder could emerge, or J&J could opt for a public spinoff instead.
J&J's shares were little changed at $265.58 Friday in New York, giving the company a market capitalization of $640 billion. Apollo shares gained 0.8% to $128.98 for a market cap of $76 billion. Both companies declined to comment.
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