Apollo Enters Talks to Acquire JNJ Orthopedics Business

Johnson & Johnson's (JNJ) stock edged up in after-hours trading on Friday as investors digested news that Apollo Global Management is in talks to buy the company's orthopedics business, DePuy Synthes.

The unit, which makes implants and instruments for various procedures, generated around $9.3 billion in sales last year, roughly a tenth of J&J's revenue and close to 30% of MedTech.

Apollo is reportedly working towards a valuation of around $20 billion for the business, with other private-equity firms also interested. However, the talks remain private and may not produce a transaction, according to Bloomberg.

J&J has announced plans to separate DePuy Synthes by 2027, with Chairman Tim Schmid stating that the company will choose a path - spin or sale - that creates the most value.