WSJ, Bloomberg: J&J Weighs $20B Sale of DePuy Synthes to Private Equity

According to a report by the Wall Street Journal (WSJ) citing people familiar with the matter, Johnson & Johnson is “in talks” with private equity firm Apollo Global Management to explore an about $20 billion transaction for its DePuy Synthes orthopedic unit.

Bloomberg News also reported on the potential transaction, saying there could be an agreement reached within several weeks, though discussions may still end without a sale, or another buyer could enter.

The New Brunswick, N.J.-based company revealed it wanted to separate the Orthopaedics business to stand on its own in October 2025. A standalone DePuy Synthes, according to J&J, would be the largest, most comprehensive orthopedics-focused company with leading market share in major categories.

“This transaction enables Johnson & Johnson to further strengthen its focus and investment toward higher-growth areas where we can meaningfully extend and improve patient lives,” J&J Chairman and CEO Joaquin Duato told the press when the news of the planned separation broke last year. “The planned separation reflects our long-standing commitment to portfolio optimization and value creation. We are confident that our Orthopaedics business will be better positioned to improve top-line growth and operating margins as a standalone business.”

DePuy posted $9.3 billion of revenue in its latest fiscal year, with a relatively flat growth of 1.3%. “It’s a steady grower, but not outperforming,” J&J’s CFO Joseph Wolk told WSJ.

In 2018, Johnson & Johnson offloaded 14 of its U.S., Germany, and Switzerland manufacturing plants to contract manufacturer Jabil, which included DePuy spine, trauma, and instrumentation facilities. The deal netted J&J about $153 million and provided 6,000 employees to Jabil.

See why experts call the J&J-Jabil deal transformative.

In June, former Goodyear Tire & Rubber Company chief financial officer (CFO) Christina Zamarro took DePuy’s chief finance spot.

Wolk said in J&J’s July earnings call that the company continues to assess all separation options and expects to remain on track for a mid-2027 separation of DePuy. A Bloomberg Intelligence analyst estimated the business may be valued at $28 billion, with debt included.

Last month, the unit acquired Expanding Innovations (EI), a developer of expandable implant technology for spine surgery. EI’s non-screw spinal interbody cage technology is designed to reduce postoperative cage collapse and vertebral body subsidence. Its portfolio includes the X-PAC line of TLIF expandable posterior cages, LLIF expandable lateral cages, and N-GAGE lumbar plates.

Get a closer look at DePuy Synthes’ business here.