Cetaphil maker Galderma to buy ZO Skin Health for $1.5 billion
Galderma, the Swiss company that makes Cetaphil, agreed to buy the skincare brand ZO Skin Health for $1.5 billion. ZO, which was founded in 2007 by a dermatologist, sells products mainly through doctors and skin care professionals. The all-cash deal is expected to close by early 2027.
Swiss skincare company Galderma has agreed to buy ZO Skin Health for $1.5 billion, including debt, The Wall Street Journal, Reuters and Bloomberg reported Wednesday.
Galderma owns brands including Cetaphil and Alastin, the Journal said. It is buying California-based ZO from Blackstone, the founding Obagi family and other shareholders.
The deal is all cash, the Journal and Bloomberg reported. Galderma said the purchase would strengthen its consumer business and support its long-term growth, according to the Journal.
ZO sells cleansers, serums, exfoliators and toners that are distributed by doctors and skincare professionals, Reuters reported. The dermatologist Zein Obagi founded the company in 2007. Blackstone bought a majority stake in ZO in 2020 through its tactical opportunities fund, Bloomberg said.
ZO had net sales of about $330 million in the 12 months to June, Reuters reported.
The purchase is Galderma's biggest since it went public in early 2024, Reuters said. It adds to Galderma's push into medical-grade skincare, a fast-growing part of the market, Bloomberg reported.
"We like the science, we like the location," Galderma CEO Flemming Ornskov said, according to Reuters. "They're stronger in med spas than we are. We're more dermatologists and plastic surgeons."
Ornskov said that part of the market is growing about 5% to 8% a year, Reuters reported. Asked about more U.S. deals, he said, "We see that more as a nice to have, not a must-have, because we have very strong organic growth, but we like tuck-ins mostly."
The French beauty company L'Oréal owns 20% of Galderma, Bloomberg and Reuters reported. Galderma also opened a U.S. and Latin American headquarters in Miami this year.
Reuters first reported the talks on Tuesday, citing two people familiar with the matter.
The deal is expected to close in the fourth quarter of 2026 or early 2027, Reuters and the Journal reported.
What we know: Galderma is paying $1.5 billion in cash for ZO Skin Health.
What we don't: Whether regulators will raise any concerns.
Where outlets agree The Wall Street Journal, Reuters and Bloomberg all report that Galderma is buying ZO Skin Health for $1.5 billion from sellers including Blackstone and the Obagi family.
Where they differ The outlets cited here report the same key facts so far.