Key Takeaways
- • Galderma (SIX: GALD) agreed to acquire 100% of ZO Skin Health from its shareholders, including funds managed by Blackstone Tactical Opportunities and the Obagi family, for an enterprise value of $1.5 billion in an all-cash deal.
- • ZO Skin Health generated net sales of approximately $330 million in the last twelve months as of June 2026, sold through more than 16,500 physician, medical spa and online accounts across more than 40 countries.
- • The transaction will be funded through existing cash reserves and bank financing and is expected to close in Q4 2026 or early 2027, subject to regulatory approvals.
- • Galderma expects the deal to be Core EPS neutral in the first full year after closing and slightly dilutive to Core EBITDA margin in 2027, with margins broadly in line with the group average from 2028.
- • The acquisition adds ZO's retinol- and acid-based daily regimens to Galderma's Dermatological Skincare portfolio, complementing Alastin's peptide-based pre- and post-procedure products.
Summary
Galderma announced it has signed an agreement to acquire ZO Skin Health, a physician-dispensed skincare brand founded by dermatologist Dr. Zein Obagi and headquartered in Irvine, California. According to the company's Business Wire announcement, the seller group includes funds managed by Blackstone Tactical Opportunities and the Obagi family. The purchase price is an enterprise value of $1.5 billion on an all-cash basis, subject to customary adjustments.
ZO Skin Health has been a reference brand in clinically backed professional skincare for more than two decades. Its portfolio spans over 40 products manufactured in the U.S. and is sold through a network of more than 16,500 physician, medical spa and online accounts across more than 40 countries, supported by a dedicated salesforce and skincare education team. The company recorded net sales of approximately $330 million in the twelve months through June 2026.
Galderma said the acquisition strengthens its Dermatological Skincare division, which includes the Cetaphil and Alastin brands, and reinforces its position with dermatologists, plastic surgeons and aesthetic professionals. ZO's daily, regimen-based offering is positioned as complementary to Alastin's peptide-based regenerative products used around procedures. Galderma plans to increase commercial investment during the first year of ownership, with growth expected to resume in the second year after closing. The company cited its Integrated Dermatology Strategy, global presence and omni-channel capabilities as support for ZO's next phase of growth.
Financially, Galderma expects the deal to be slightly dilutive to Core EBITDA margin in 2027 and broadly in line with its group average from 2028 onward. The transaction is expected to be Core EPS neutral in the first full year after closing and consistent with the company's commitment to a solid investment-grade credit rating. Closing is expected in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and other customary conditions.
Lazard is lead financial advisor to Galderma, with JP Morgan as financial advisor and Ropes & Gray LLP as legal advisor. Raymond James is lead financial advisor to ZO Skin Health and Blackstone, with Citi as financial advisor, and Weil, Gotshal & Manges LLP and Paul Weiss as legal counsel.
ZO Skin Health has been a reference brand in clinically backed professional skincare for more than two decades. Its portfolio spans over 40 products manufactured in the U.S. and is sold through a network of more than 16,500 physician, medical spa and online accounts across more than 40 countries, supported by a dedicated salesforce and skincare education team. The company recorded net sales of approximately $330 million in the twelve months through June 2026.
Galderma said the acquisition strengthens its Dermatological Skincare division, which includes the Cetaphil and Alastin brands, and reinforces its position with dermatologists, plastic surgeons and aesthetic professionals. ZO's daily, regimen-based offering is positioned as complementary to Alastin's peptide-based regenerative products used around procedures. Galderma plans to increase commercial investment during the first year of ownership, with growth expected to resume in the second year after closing. The company cited its Integrated Dermatology Strategy, global presence and omni-channel capabilities as support for ZO's next phase of growth.
Financially, Galderma expects the deal to be slightly dilutive to Core EBITDA margin in 2027 and broadly in line with its group average from 2028 onward. The transaction is expected to be Core EPS neutral in the first full year after closing and consistent with the company's commitment to a solid investment-grade credit rating. Closing is expected in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and other customary conditions.
Lazard is lead financial advisor to Galderma, with JP Morgan as financial advisor and Ropes & Gray LLP as legal advisor. Raymond James is lead financial advisor to ZO Skin Health and Blackstone, with Citi as financial advisor, and Weil, Gotshal & Manges LLP and Paul Weiss as legal counsel.
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