Galderma has agreed to acquire the physician-dispensed skin care brand ZO Skin Health in an all-cash transaction.

Galderma announced it will acquire ZO Skin Health for $1.5 billion from shareholders, including funds managed by Blackstone and the Obagi family. The deal involves 100 percent of the Irvine, California-based company and is expected to close in late 2026 or early 2027.

Strategic Portfolio Expansion

Founded by dermatologist Dr. Zein Obagi, ZO Skin Health offers a portfolio of over 40 products sold through a network of more than 16,500 physicians, medical spas, and online accounts across 40 countries. The brand reported net sales of approximately $330 million for the 12-month period ending in June. Galderma intends to integrate the acquisition into its existing Dermatological Skincare and Injectable Aesthetic businesses. The company noted that ZO Skin Health’s retinol- and acid-based protocols will complement the peptide-based offerings of its existing Alastin brand.

Financial Outlook and Integration

Galderma plans to increase commercial investment in the brand during its first year of ownership to support future growth. The company expects the transaction to be core EPS neutral in the first full year after closing and slightly dilutive to its core EBITDA margin in 2027, with margins expected to align with its average from 2028 onward. According to L’Oréal estimates, the dermocosmetics category has seen significant growth, with global sales rising from approximately 14.3 billion euros in 2019 to 28.2 billion euros in 2024.