Galderma has signed an agreement to acquire ZO Skin Health from shareholders including funds managed by Blackstone Tactical Opportunities and the Obagi family for an enterprise value of $1.5 billion.
The all-cash transaction will give Galderma 100% ownership of ZO Skin Health and expand its Dermatological Skincare portfolio, which already includes Cetaphil and Alastin. Galderma plans to fund the acquisition through a combination of existing cash reserves and bank financing.
Founded by dermatologist Dr. Zein Obagi and headquartered in Irvine, California, ZO Skin Health has built a physician-dispensed skincare business around clinically backed, protocol-based daily care. The company offers more than 40 products and distributes through over 16,500 physician, medical spa, and online accounts across more than 40 countries.
ZO Skin Health generated approximately $330 million in net sales during the 12 months ended June 2026. Galderma sees an opportunity to accelerate the brand’s growth by expanding commercial investment, innovation, skincare education, and geographic reach through its global platform.
The acquisition is also intended to broaden Galderma’s offering in the physician-dispensed skincare market. ZO Skin Health’s regimen-based portfolio, including retinol- and acid-based protocols, complements Alastin’s peptide-based regenerative skincare products, which are primarily focused on pre- and post-procedure care.
Galderma said its Integrated Dermatology Strategy and relationships with dermatologists, plastic surgeons, and aesthetic professionals could provide additional opportunities to expand ZO Skin Health. The transaction also gives Galderma another premium skincare brand alongside its existing dermatological and injectable aesthetics businesses.
The company plans to increase commercial investment during its first year of ownership to establish a foundation for renewed growth beginning in the second year following closing. The transaction is expected to be slightly dilutive to Galderma’s Core EBITDA margin in 2027 before reaching a margin broadly comparable with the group’s average beginning in 2028. The acquisition is expected to be Core EPS neutral in the first full year after closing.
The transaction is expected to close in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and customary closing conditions. Lazard is serving as lead financial advisor to Galderma, with JPMorgan acting as financial advisor and Ropes & Gray as legal advisor. Raymond James is lead financial advisor to ZO Skin Health and Blackstone, with Citi also serving as financial advisor and Weil, Gotshal & Manges and Paul Weiss providing legal counsel.
KEY QUOTES:
“This acquisition is another important step towards building the world’s most innovative dermatology portfolio, strengthening our offering in an area where we already have significant capabilities. ZO Skin Health brings strong clinical credentials, a distinctive protocol-based approach and a trusted position among dermatologists and plastic surgeons. We see significant opportunities to reignite its growth through investment in innovation and commercial reach. With our Dermatological Skincare and Injectable Aesthetic businesses, Galderma is strategically positioned to compete for and win the attractive growth opportunities in the fast-growing medical-grade skincare segment.”
Flemming Ørnskov, CEO Of Galderma
“Galderma is an organization I have long admired for its complete dedication to dermatology and its partnership with healthcare professionals around the world. ZO Skin Health has been my life’s work, and I could not be prouder to see it join a company that shares our commitment to science and the providers who trust us every day. I am confident we have found a home where our philosophy will endure and grow for the benefit of dermatologists, plastic surgeons, aestheticians and the patients we serve.”
Dr. Zein Obagi, Founder And Medical Director Of ZO Skin Health
“We are proud to have partnered with Dr. Obagi and the ZO Skin Health team during an important period of growth when the company more than doubled its revenue. We thank them for their dedication, and are confident ZO Skin Health is well positioned to continue advancing its mission moving forward together with Galderma.”
Shary Moalemzadeh, Senior Managing Director At Blackstone
