Apollo is negotiating for DePuy Synthes at a price tag close to $20 billion, according to people who asked not to be named because the discussions are private. Those people said multiple private equity investors have been circling the asset. The parties could reach an agreement within several weeks, but the process could just as easily end without a deal or see a rival bidder step in.
J&J might also choose to spin the business into a standalone public company. Both Apollo and J&J declined to comment.
DePuy Synthes makes products used in hip and knee replacement surgeries and, as a standalone entity, J&J has said it would be the largest orthopedics company in the world. The unit brought in $9.3 billion in revenue last year. Bloomberg Intelligence's Matt Henriksson estimates the business could fetch about $28 billion including debt.
Interest extends beyond Apollo. Bloomberg News reported in February that a number of buyout shops were weighing a joint bid for the franchise. J&J announced in October that it would separate its orthopedics operation. On the company's July earnings call, Chief Financial Officer Joseph Wolk said J&J continues to "evaluate all separation options that create shareholder value and set the DePuy Synthes business up for success long-term," adding the company is pleased with progress and expects the separation to land around the middle of 2027.
Big corporate moves can feel uncertain, so steady financial habits protect your progress. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.
When businesses change hands, thoughtful planning helps preserve and grow long term savings. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.
