Business News: Galderma Set To Acquire ZO Skin Health

Galderma is set to acquire ZO Skin Health, a physician-dispensed skincare brand. Founded by dermatologist Zein Obagi, MD , and headquartered in Irvine, CA, ZO Skin Health recorded net sales of approximately $330 million USD in the last twelve months as of June 2026. Galderma will acquire 100% of ZO Skin Health for an enterprise value of $1.5 billion USD in an all-cash transaction, subject to customary adjustments, and will be funded through a combination of existing cash reserves and bank financing. The transaction is expected to close in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and other customary closing conditions. Galderma plans to increase commercial investment during the first year of ownership to strengthen the foundation for renewed growth beginning in the second year following 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 onwards. The acquisition is expected to be Core EPS neutral in the first full year following closing and to be in-line with Galderma’s commitment to a solid investment grade credit rating. 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. The acquisition augments Galderma’s Dermatological Skincare portfolio, which includes Cetaphil and Alastin brands. “Galderma is an organization I have long admired for its complete dedication to dermatology and its partnership with healthcare professionals around the world,” says Dr. Obagi, the Founder and Medical Director of ZO Skin Health, in a news release. “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.” “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,” adds Flemming Ørnskov, MD, MPH, Chief Executive Officer at Galderma. “ 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.”