Key Takeaways
- • Galderma has signed an agreement to acquire 100% of ZO Skin Health for an enterprise value of $1.5 billion in an all-cash deal, according to HedgeCo.Net.
- • The sellers include funds managed by Blackstone Tactical Opportunities and the Obagi family, making the transaction a classic private equity sponsor exit.
- • ZO recorded about $330 million of net sales in the twelve months ended June 2026, sold through more than 16,500 physician, medical spa and online accounts in over 40 countries.
- • Galderma plans to fund the purchase with cash and bank financing and expects the deal to be Core EPS-neutral in the first full year after closing.
- • Closing is expected in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and customary conditions.
Summary
Galderma has agreed to acquire 100% of ZO Skin Health from shareholders including funds managed by Blackstone Tactical Opportunities and the Obagi family, in an all-cash transaction valued at an enterprise value of $1.5 billion, according to HedgeCo.Net. Closing is expected in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and customary conditions.
Founded by dermatologist Dr. Zein Obagi and based in Irvine, California, ZO Skin Health sells clinical, regimen-based skincare through more than 16,500 physician, medical spa and online accounts in more than 40 countries. Galderma said ZO recorded about $330 million of net sales in the twelve months ended June 2026, across a portfolio of more than 40 products manufactured in the U.S.
Galderma plans to fund the acquisition with cash and bank financing and expects the deal to be Core EPS-neutral in the first full year after closing. The company expects to increase commercial investment in year one to support renewed growth from year two. It described ZO's daily protocols as complementary to Alastin's peri-procedure regenerative line within its Dermatological Skincare portfolio, which also includes Cetaphil.
Blackstone Senior Managing Director Shary Moalemzadeh said the firm partnered with Dr. Obagi during a period when ZO more than doubled revenue. HedgeCo.Net characterized the sale as a classic sponsor exit of a consumer-health specialty brand into a strategic consolidator with global dermatology distribution. Lazard and JP Morgan advised Galderma, while Raymond James and Citi advised ZO and Blackstone. Investors will watch the regulatory path and whether Galderma can reaccelerate growth after the integration investment period.
Founded by dermatologist Dr. Zein Obagi and based in Irvine, California, ZO Skin Health sells clinical, regimen-based skincare through more than 16,500 physician, medical spa and online accounts in more than 40 countries. Galderma said ZO recorded about $330 million of net sales in the twelve months ended June 2026, across a portfolio of more than 40 products manufactured in the U.S.
Galderma plans to fund the acquisition with cash and bank financing and expects the deal to be Core EPS-neutral in the first full year after closing. The company expects to increase commercial investment in year one to support renewed growth from year two. It described ZO's daily protocols as complementary to Alastin's peri-procedure regenerative line within its Dermatological Skincare portfolio, which also includes Cetaphil.
Blackstone Senior Managing Director Shary Moalemzadeh said the firm partnered with Dr. Obagi during a period when ZO more than doubled revenue. HedgeCo.Net characterized the sale as a classic sponsor exit of a consumer-health specialty brand into a strategic consolidator with global dermatology distribution. Lazard and JP Morgan advised Galderma, while Raymond James and Citi advised ZO and Blackstone. Investors will watch the regulatory path and whether Galderma can reaccelerate growth after the integration investment period.
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