J&J Is In Talks to Sell Its Hips-and-Knees Business to Apollo for $20 Billion

Johnson & Johnson is in advanced talks to sell its orthopedic reconstruction business—focused on hips and knees—to private equity firm Apollo Global Management for approximately $20 billion, according to The Wall Street Journal. The potential divestiture would mark one of the largest healthcare deals of the year and represents a strategic retreat from a legacy business as the healthcare giant refocuses its portfolio.

The orthopedic unit has faced mounting pressure from competition and pricing headwinds in recent years. Shedding the division would allow Johnson & Johnson to concentrate capital on higher-growth areas including pharmaceuticals and medical technology. Apollo has been actively building its healthcare investment platform and views the stable cash flows from joint-replacement products as attractive in the current environment.

No final agreement has been reached, and terms could still change or talks could fall apart. The transaction would follow Johnson & Johnson's 2023 spinoff of its consumer health business, Kenvue, as part of a multi-year effort to streamline operations.