Skincare Specialist Galderma to Buy ZO Skin Health for $1.5 Billion — Update
By Aimee Look
Switzerland's Galderma Group agreed to buy ZO Skin Health from Blackstone, the Obagi family and other shareholders for $1.5 billion, including debt, in a move to expand its premium skincare portfolio.
The company behind skincare brands Cetaphil and Alastin said Wednesday that the all-cash acquisition of California-based ZO Skin Health would strengthen its consumer business and support its long-term growth ambitions.
ZO Skin Health, founded in 2007 by dermatologist Zein Obagi, makes a range of cleansers, exfoliators, toners and other skincare products in the U.S. and sells them in more than 40 countries. Funds managed by Blackstone's Tactical Opportunities investment platform took a majority stake in the company in 2020 and helped it more than double revenue to $330 million for the year to June 30.
Galderma, which generated sales of $5.2 billion last year, said it plans to increase commercial investment in the business during the first year of ownership to reignite its growth. The company cited the potential for combining ZO Skin Health's product portfolio with that of its Alastin brand in particular.
Galderma said the deal would dilute its core earnings before interest, taxes, depreciation and amortization margin next year before returning to its average profitability from 2028 onward. The acquisition is expected to be neutral at the core earnings per share level in the first full year after closing, according to the company.
The deal, funded by cash reserves and bank financing, is expected to close in the current quarter or early 2027, Galderma said.
Galderma was founded by L'Oreal and Nestle more than 40 years ago. In addition to a consumer-facing skincare business, it also owns a therapeutic business that sells prescription dermatology drugs and an injectable-aesthetics unit that sells rivals to AbbVie's Botox.
Write to Aimee Look at aimee.look@wsj.com
(END) Dow Jones Newswires
October 14, 2026 03:47 ET (07:47 GMT)
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