An agreement could be reached within weeks, the report said, adding that the drugmaker could also decide to spin off the unit known as DePuy Synthes, which has attracted interest from several private equity firms, as a public company.
Apollo and J&J did not immediately respond to Reuters requests for comment outside business hours.
Talks of a potential deal come amid interest in private equity investments in healthcare companies following Avanos Medical’s acquisition of US-based Industrial Partners for $1.27 billion in April and Blackstone and TPG agreeing to acquire women’s health diagnostics company Hologic for more than $18 billion in 2025.
J&J’s orthopedic unit, which makes joint implants and surgical devices, earned $9.3 billion in 2025 but faces thousands of lawsuits related to its hip replacement devices.
Reuters reported in February that J&J was preparing a potential sale of its orthopedic unit, with the company eyeing private equity firms as the most likely buyers.
J&J said last year it planned to spin off DePuy Synthes into a standalone company within the next 18 to 24 months, its second major spin-off as the company increases its focus on high-growth healthcare segments. The company’s chief financial officer, Joe Volk, previously said J&J was exploring multiple separation paths, with a focus on a tax-free spin-off, but remained open to other options.
He added that the separation process is already underway and does not expect further significant updates on the deal until mid-2026.