Blackstone inks $1.5bn sale of ZO Skin Health to Galderma

The private equity firm Blackstone Tactical Opportunities has agreed to sell ZO Skin Health to Galderma, a Swiss dermatology company. The transaction is valued at an enterprise value of $1.5 billion. Galderma will acquire 100 percent of ZO Skin Health from its current shareholders, which include Blackstone and the Obagi family. This all-cash deal will be funded through Galderma's cash reserves and bank financing. ZO Skin Health will operate as a standalone business within Galderma's portfolio. The acquisition is anticipated to close in the first half of 2024, pending customary closing conditions and regulatory approvals. ZO Skin Health’s management team is expected to remain in place, with the company maintaining its headquarters in Irvine, California. Its products are manufactured in the US and distributed globally. Blackstone noted that ZO Skin Health more than doubled its revenue during its period of ownership. ZO Skin Health, founded by dermatologist Zein Obagi over two decades ago, offers more than 40 skincare products. These products are sold through a network of over 16,500 physician, medical spa, and online accounts across more than 40 countries. The company reported net sales of approximately $330 million for the 12 months ending June 2026. Galderma plans to integrate ZO Skin Health into its dermatological skincare portfolio, which currently features brands such as Cetaphil and Alastin. This strategic move aims to leverage ZO Skin Health's retinol- and acid-based daily regimens, which are seen as complementary to Alastin's peptide-based products used in pre- and post-procedure settings. Galderma intends to increase commercial investment in ZO Skin Health during its initial year of ownership to foster renewed growth. This divestiture by Blackstone and the acquisition by Galderma highlight continued investor interest and consolidation within the medical aesthetics and professional skincare sectors. The pairing of ZO Skin Health with Galderma