Galderma has agreed to acquire ZO Skin Health for an enterprise value of about $1.5bn, buying the physician-dispensed skincare brand from funds managed by Blackstone Tactical Opportunities and the Obagi family.
Why Galderma is buying ZO Skin Health
ZO sells medical-grade skincare through physicians and skincare professionals, complementing Galderma's dermatology and aesthetics businesses. Galderma plans to increase commercial investment in the first year of ownership, targeting renewed growth from the second year.
Deal terms and financing
Galderma is buying 100% of ZO, funded through existing cash reserves and bank financing. It expects the deal to be neutral to core earnings per share in the first full year after closing. ZO recorded net sales of about $330m in the 12 months to June 2026.
Regulatory approvals and timing
The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2026 or early 2027.
Market context
Reuters reported on 13 October that the two sides had agreed a deal of around $1.5bn. Blackstone acquired a majority stake in ZO in 2020 and had been exploring a sale with Citigroup and Raymond James.
