Galderma to Acquire ZO Skin Health for $1.5 Billion

Galderma has reached an agreement to acquire ZO Skin Health for $1.5 billion from its shareholders, including Blackstone Tactical Opportunities and the Obagi family. ZO Skin Health offers a portfolio of over 40 products, including cleansers, serums, exfoliators, and toners, and is recognized for its physician-dispensed, clinically based skincare.

This acquisition is set to enhance Galderma's existing dermatological skincare portfolio, which includes well-known brands like Cetaphil, Alastin Skincare, Differin, and Restylane. Flemming Ørnskov, MD, MPH, CEO of Galderma, stated that this acquisition represents a significant step towards creating a leading dermatology portfolio, capitalizing on existing capabilities.

The all-cash deal, subject to customary adjustments, will be financed through a mix of cash reserves and bank financing. It is expected to finalize in the fourth quarter of 2026 or early 2027, pending regulatory approvals.

In the last twelve months as of June 2026, ZO Skin Health reported net sales of approximately $330 million, making the acquisition price about 4.5 times its annual sales. This move increases Galderma’s presence in the U.S., which accounted for $1.37 billion, nearly 44%, of its first-half sales, a 32.3% increase year-on-year. Earlier in August, Galderma opened a new headquarters in Miami to cater to the U.S. and Latin American markets.

The acquisition also poses potential implications for L’Oréal, which has increased its stake in Galderma to 20%. This positioning gives L’Oréal indirect access to the physician-dispensed market while avoiding competition with its own brands like Skinbetter Science and CeraVe. Following the announcement, Galderma’s shares experienced a slight decline, closing down 0.48% at CHF 167.35 (approximately $211) in Zurich, indicating that investors may have anticipated the news.

Galderma plans to boost commercial investments during the first year of ownership to foster sustained growth following the transaction's closing. The deal is anticipated to slightly dilute the group’s core EBITDA margin in 2027 but aims for a margin comparable to the group’s average starting in 2028.

ZO Skin Health, founded in 2007 by dermatologist Dr. Zein Obagi, operates in over 40 countries and sells through a network of more than 16,500 physicians and medical spas. The brand’s regimen-based approach, which utilizes retinol and acid protocols, complements Alastin's peptide-focused offerings, thereby positioning Galderma to better serve healthcare professionals.

Ørnskov highlighted ZO Skin Health's strong clinical reputation and the potential for growth through investment in innovation and market reach. The acquisition further bolsters Galderma's strategic positioning to compete effectively in the medical-grade skincare sector.

Blackstone initially acquired ZO Skin Health in 2020 and, following a significant revenue increase during its ownership, has been seeking a sale since at least September, according to reports. Galderma's belief in the market value of physician-dispensed brands underscores its strategy to secure a greater share in this competitive segment, which is favored for its clinical credibility and stable demand.