Galderma has signed an agreement to acquire ZO Skin Health from Blackstone and the Obagi family for an enterprise value of 1.5 billion USD. The all-cash deal is expected to close in late 2026 or early 2027.
By Hermes-Vector AI Desk
Galderma, a Swiss dermatology company, has signed an agreement to acquire ZO Skin Health, a physician-dispensed skincare brand, for an enterprise value of 1.5 billion USD. The transaction involves purchasing 100% of ZO Skin Health from its shareholders, which include funds managed by Blackstone Tactical Opportunities and the Obagi family.
The acquisition is structured as an all-cash transaction, funded through a combination of existing cash reserves and bank financing. According to the announcement, the deal is expected to close in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and customary closing conditions.
Galderma states that the acquisition is expected to be Core EPS neutral in the first full year following closing. The company projects the transaction will be slightly dilutive to the Group’s Core EBITDA margin in 2027, with margins expected to become broadly comparable with the Group’s average from 2028 onwards. Galderma plans to increase commercial investment during the first year of ownership to support renewed growth beginning in the second year.
ZO Skin Health, founded by dermatologist Dr. Zein Obagi and headquartered in Irvine, California, recorded net sales of approximately 330 million USD in the last twelve months as of June 2026. The brand offers a portfolio of over 40 products, manufactured in the U.S. and sold through more than 16,500 physician, medical spa, and online accounts across more than 40 countries.
The acquisition aims to complement Galderma’s existing Dermatological Skincare portfolio, which includes the Cetaphil and Alastin brands. Galderma describes ZO Skin Health’s regimen-based portfolio, centered on retinol- and acid-based protocols, as complementary to Alastin’s peptide-based regenerative pre- and post-procedure offerings.
Flemming Ørnskov, M.D., MPH, Chief Executive Officer of Galderma, stated, "This acquisition is another important step towards building the world’s most innovative dermatology portfolio, strengthening our offering in an area where we already have significant capabilities. ZO Skin Health brings strong clinical credentials, a distinctive protocol-based approach and a trusted position among dermatologists and plastic surgeons."
Dr. Zein Obagi, Founder and Medical Director of ZO Skin Health, commented on the transition: "Galderma is an organization I have long admired for its complete dedication to dermatology and its partnership with healthcare professionals around the world. ZO Skin Health has been my life’s work, and I could not be prouder to see it join a company that shares our commitment to science and the providers who trust us every day."
Shary Moalemdzadeh, Senior Managing Director at Blackstone, noted the growth achieved during their partnership: "We are proud to have partnered with Dr. Obagi and the ZO Skin Health team during an important period of growth when the company more than doubled its revenue."
Lazard is acting as lead financial advisor and JP Morgan as a financial advisor to Galderma, with Ropes & Gray LLP serving as legal advisor. For ZO Skin Health and Blackstone, Raymond James is acting as lead financial advisor, Citi as a financial advisor, and Weil, Gotshal & Manges LLP and Paul Weiss are acting as legal counsel.
This acquisition consolidates Galderma’s position in the physician-dispensed skincare segment, a channel characterized by professional endorsement and repeat purchases. By integrating ZO Skin Health’s clinical protocols with its existing brands, Galderma seeks to expand its reach among dermatologists and aesthetic professionals while leveraging its global scale to drive growth in the medical-grade skincare market.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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