ZUG: Galderma announced Wednesday it has signed an agreement to acquire ZO Skin Health, a physician-dispensed skincare brand, from its shareholders, including funds managed by Blackstone Tactical Opportunities and the Obagi family.

Galderma will acquire 100% of ZO Skin Health for an enterprise value of $1.5 billion in an all-cash transaction, subject to customary adjustments. The deal will be funded through a combination of existing cash reserves and bank financing and is expected to close in the fourth quarter of 2026 or early 2027, pending regulatory approvals and other customary closing conditions.

Founded by dermatologist Dr. Zein Obagi and headquartered in Irvine, California, ZO Skin Health has been a reference name in clinically backed professional skincare for more than two decades. Its portfolio spans over 40 products manufactured in the U.S. and sold through more than 16,500 physician, medical spa and online accounts across more than 40 countries. The company recorded net sales of approximately $330 million in the 12 months ending June 2026.

“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,” said Flemming Ørnskov, M.D., MPH, chief executive officer of Galderma. “We see significant opportunities to reignite its growth through investment in innovation and commercial reach.”

The acquisition enhances Galderma’s Dermatological Skincare portfolio, which includes Cetaphil and Alastin. ZO Skin Health’s regimen-based portfolio, centered on retinol- and acid-based protocols, is complementary to Alastin’s peptide-based regenerative pre- and post-procedure offering, the company said.

Galderma plans to increase commercial investment during the first year of ownership to strengthen the foundation for renewed growth beginning in the second year after closing. The transaction is expected to be slightly dilutive to the group’s Core EBITDA margin in 2027 and to achieve a margin broadly comparable with the group’s average from 2028 onward. It is expected to be Core EPS neutral in the first full year following closing.

“This is 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,” said Dr. Zein Obagi, founder and medical director of ZO Skin Health.

Shary Moalemzadeh, senior managing director at Blackstone, said the firm was proud to have partnered with Dr. Obagi and the ZO Skin Health team during a period when the company more than doubled its revenue.

Lazard is acting as lead financial advisor, JP Morgan is acting as a financial advisor, and Ropes & Gray LLP is acting as legal advisor to Galderma. Raymond James is acting as lead financial advisor, Citi is acting as a financial advisor, and Weil, Gotshal & Manges LLP and Paul Weiss are acting as legal counsel to ZO Skin Health and Blackstone.

Galderma, founded in 1981 and listed on the SIX Swiss Exchange, is present in approximately 90 countries and describes itself as the pure-play dermatology category leader.