Galderma has entered into an all-cash agreement to acquire ZO Skin Health for $1.5 billion. ZO Skin Health, founded by dermatologist Zein Obagi, MD, is a well-known brand in the physician-dispensed skincare market. Customers can continue to purchase ZO products through their doctor's office or on the official website.
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Based in Irvine, California, ZO Skin Health has built a reputation over 20 years for its clinically-driven skincare routines, featuring over 40 products primarily focused on retinol and acid treatments. The brand reported approximately $330 million in net sales in the 12 months leading up to June 2026, with revenue reportedly more than doubling during Blackstone's investment.
Galderma, known for its brands like Cetaphil and Restylane, previously acquired Alastin and aims to expand its footprint in medical-grade skincare through this acquisition. CEO Flemming Ørnskov, MD, MPH, indicated that this acquisition is part of Galderma's strategy to innovate within its dermatology portfolio.
Dr. Obagi will remain with ZO Skin Health as founder and medical director. He expressed excitement about the acquisition, stating that he admires Galderma's commitment to dermatology and believes it is a fitting home for ZO Skin Health.
The acquisition is anticipated to close in the fourth quarter of 2026 or early 2027, subject to regulatory approvals. Galderma plans to invest in ZO Skin Health shortly after the deal closes, aiming to spark growth in the second year of ownership.