Galderma has entered into an agreement to purchase ZO Skin Health from shareholders, including funds managed by Blackstone Tactical Opportunities and the Obagi family, for an enterprise value of $1.5 billion. This all-cash deal will allow Galderma to gain complete ownership of ZO Skin Health, enhancing its Dermatological Skincare portfolio, which includes brands like Cetaphil and Alastin. The acquisition will be financed through a mix of cash reserves and bank debt.
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Founded by dermatologist Dr. Zein Obagi and based in Irvine, California, ZO Skin Health offers a range of over 40 physician-dispensed skincare products. The company has established a substantial presence, distributing its products through more than 16,500 physician and medical spa accounts across over 40 countries. In the 12 months ending June 2026, ZO Skin Health reported approximately $330 million in net sales.
Galderma aims to accelerate ZO Skin Health's growth by increasing commercial investments and expanding its geographic reach. The acquisition will also enhance Galderma's offerings in the physician-dispensed skincare market, as ZO's regimen-based products complement Alastin's focus on pre- and post-procedure care.
Galderma's Integrated Dermatology Strategy is expected to create additional growth opportunities for ZO Skin Health, benefiting from established relationships with dermatologists and aesthetic professionals. The company plans to ramp up commercial investment in its first year post-acquisition, setting the stage for sustainable growth in subsequent years. While the transaction is projected to slightly reduce Galderma’s Core EBITDA margin in 2027, it should stabilize to match the group average by 2028. The acquisition is anticipated to be neutral to Core EPS in the first full year following its completion.
The transaction is expected to finalize in the fourth quarter of 2026 or early 2027, pending regulatory approvals and customary closing conditions. Lazard is the lead financial advisor for Galderma, with JPMorgan also advising and Ropes & Gray providing legal assistance. For ZO Skin Health, Raymond James serves as the lead financial advisor, supported by Citi, while Weil, Gotshal & Manges and Paul Weiss offer legal counsel.
Flemming Ørnskov, CEO of Galderma, stated that this acquisition is key to enhancing the company’s innovative dermatology portfolio and highlighted the strong clinical reputation of ZO Skin Health.
Dr. Zein Obagi, founder of ZO Skin Health, expressed pride in joining an organization like Galderma that shares its commitment to dermatological excellence. Shary Moalemzadeh, Senior Managing Director at Blackstone, acknowledged the partnership's role in ZO Skin Health’s significant growth and expressed confidence in its future under Galderma.