Investing.com -- Swiss skincare group Galderma said on Wednesday it had agreed to buy ZO Skin Health, a physician-dispensed skincare brand owned by Blackstone, for an enterprise value of $1.5 billion in cash, expanding its dermatological skincare business as competition grows for clinically backed brands.
The deal, which Reuters had reported on Tuesday, will bring ZO under the same roof as Galderma's Cetaphil and Alastin brands.
Galderma is also the maker of the Dysport neurotoxin and Restylane dermal fillers, and L'Oréal holds a 20% stake in the company.
ZO, founded by dermatologist Zein Obagi and based in Irvine, California, recorded net sales of about $330 million in the 12 months to June 2026.
Galderma will fund the purchase through existing cash reserves and bank financing. The deal is expected to close in the fourth quarter of 2026 or early 2027, subject to regulatory approvals.
The company expects the deal to be neutral to core earnings per share in the first full year after closing and slightly dilutive to its core EBITDA margin in 2027, with margins broadly in line with the group average from 2028.
It plans to increase commercial investment in the first year of ownership, aiming for renewed growth from the second year.
"We see significant opportunities to reignite its growth through investment in innovation and commercial reach," Galderma Chief Executive Flemming Ørnskov said in a statement.
Galderma opened its U.S. and Latin America headquarters in Miami in August.
Navamya Acharya contributed to this report.
Original Article
Galderma to buy Blackstone-owned ZO Skin Health for $1.5 bln
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