Exclusive report - According to sources, Galderma has agreed to acquire ZO Skin Health for approximately $1.5 billion.

Abigail Summerville

Reuters New York, October 13 - According to two people familiar with the matter, Swiss skincare group Galderma (GALD.S) has agreed to acquire medical-grade skincare company ZO Skin Health for approximately $1.5 billion.

Sources stated the deal could be announced in the coming days.

ZO and Galderma, contacted outside regular business hours, did not immediately respond to requests for comment.

Last month, Reuters (link) reported that ZO’s parent company—investment firm Blackstone Group BX.N—was exploring a potential sale with investment banks Citigroup C.N and Raymond James RJF.N. Blackstone Group declined to comment on Tuesday.

This move by dermatology company Galderma, in which beauty giant L'Oréal (OREP.PA) holds a 20% stake, will expand its presence in the US market. In August, the company established its US and Latin America headquarters in Miami.

Founded in 1981, Galderma also owns the skincare brands Cetaphil and Alastin Skincare, acne gels Differin Epiduo, injectable neurotoxin Dysport, and dermal filler brand Restylane.

Many strategic buyers are prioritizing clinically proven skincare brands like ZO, which are sold through physician channels, since these brands not only offer significant efficacy compared to over-the-counter products, but also have more stable demand.

Dermatologist Zein Obagi founded ZO in 2007. ZO’s skincare products—including cleansers, serums, exfoliants, and toners—are distributed through doctors and skincare professionals.

Blackstone Group acquired ZO in 2020 through its Tactical Opportunities Fund.

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