Key Takeaways
- • Galderma has agreed to acquire ZO Skin Health for an enterprise value of $1.5 billion in cash, buying the company from shareholders including funds managed by Blackstone Tactical Opportunities and the Obagi family.
- • ZO reported net sales of about $330 million for the 12 months ended June 2026, selling more than 40 U.S.-made products through more than 16,500 physician, medical spa and online accounts in over 40 countries.
- • Galderma will combine ZO with its Alastin and Cetaphil skincare lines, funding the deal with cash and bank financing.
- • Closing is expected in the fourth quarter of 2026 or early 2027.
Summary
Galderma has agreed to acquire ZO Skin Health for an enterprise value of $1.5 billion in cash. The sellers include funds managed by Blackstone Tactical Opportunities, which backed the company, along with the Obagi family. The transaction was announced in the source reporting, with the deal set to be financed through a combination of cash and bank financing.
ZO Skin Health, founded by dermatologist Dr. Zein Obagi and based in Irvine, California, manufactures skincare products that physicians and medical spas sell to their patients. Its portfolio includes more than 40 U.S.-made products, including daily retinol- and acid-based regimens. The products are sold through more than 16,500 physician, medical spa and online accounts across more than 40 countries. ZO generated net sales of about $330 million for the 12 months ended June 2026.
Strategically, Galderma plans to pair ZO with its existing Alastin and Cetaphil skincare lines, extending its presence in the professional dermatology and aesthetics channel. Closing is expected in the fourth quarter of 2026 or early 2027, subject to customary conditions.
Lazard, J.P. Morgan and Ropes & Gray advised Galderma on the transaction. Raymond James, Citi, Weil, Gotshal & Manges and Paul Weiss advised ZO and Blackstone.
ZO Skin Health, founded by dermatologist Dr. Zein Obagi and based in Irvine, California, manufactures skincare products that physicians and medical spas sell to their patients. Its portfolio includes more than 40 U.S.-made products, including daily retinol- and acid-based regimens. The products are sold through more than 16,500 physician, medical spa and online accounts across more than 40 countries. ZO generated net sales of about $330 million for the 12 months ended June 2026.
Strategically, Galderma plans to pair ZO with its existing Alastin and Cetaphil skincare lines, extending its presence in the professional dermatology and aesthetics channel. Closing is expected in the fourth quarter of 2026 or early 2027, subject to customary conditions.
Lazard, J.P. Morgan and Ropes & Gray advised Galderma on the transaction. Raymond James, Citi, Weil, Gotshal & Manges and Paul Weiss advised ZO and Blackstone.
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