HedgeCo.Net — Galderma said it has signed an agreement to acquire 100% of ZO Skin Health from 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. Closing is expected in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and customary conditions.
Founded by dermatologist Dr. Zein Obagi and based in Irvine, California, ZO Skin Health sells clinical, regimen-based skincare through more than 16,500 physician, medical spa and online accounts in more than 40 countries. Galderma said ZO recorded about $330 million of net sales in the twelve months ended June 2026 across a portfolio of more than 40 products manufactured in the U.S.
Galderma plans to fund the purchase with cash and bank financing and said the deal should be Core EPS-neutral in the first full year after closing. It expects to raise commercial investment in year one to support renewed growth from year two, and described ZO’s daily protocols as complementary to Alastin’s peri-procedure regenerative line within its Dermatological Skincare portfolio alongside Cetaphil.
Blackstone Senior Managing Director Shary Moalemzadeh said the firm partnered with Dr. Obagi during a period when ZO more than doubled revenue. For private equity, the sale is a classic sponsor exit of a consumer-health specialty brand into a strategic consolidator with global dermatology distribution.
Lazard and JP Morgan advised Galderma; Raymond James and Citi advised ZO and Blackstone. Investors will watch the regulatory path and whether Galderma can reaccelerate growth after the integration investment period.