Swiss health group Galderma acquires US skincare brand for $1.5bn

Galderma acquires US skincare brand for 1.5 billion dollars Keystone-SDA

Swiss health group Galderma is acquiring the United States skincare brand ZO Skin Health for US$1.5 billion.

According to a press release issued on Wednesday, Galderma aims to strengthen its medical skincare business and drive growth in the segment of skincare products distributed through doctors with this acquisition.

An agreement has been signed with ZO Skin Health to acquire 100% of the company. The sellers include funds managed by Blackstone Tactical Opportunities and the family of the brand’s founder, Zein Obagi. The purchase price of $1.5 billion will be paid entirely in cash and covered by existing cash reserves and bank financing.

The all-cash transaction is expected to be completed in the fourth quarter of 2026 or early 2027, subject to regulatory approvals and other customary closing conditions. In the first full financial year following completion, the acquisition is expected to have a neutral impact on adjusted earnings per share (core EPS).

For 2027, Galderma anticipates a slight dilution of the adjusted EBITDA margin. From 2028 onwards, the margin is expected to return to approximately the Group average.

Complement to the existing portfolio

With ZO Skin Health, Galderma is expanding its skincare business, which already includes the Cetaphil and Alastin brands. According to the company, the two brands, ZO Skin Health and Alastin, complement each other particularly through their different areas of focus.

ZO Skin Health offers a wide range of medically-oriented skincare products for daily use. The treatments are based, amongst other things, on retinol and acids and follow structured skincare routines. Alastin, on the other hand, focuses primarily on regenerative skincare using peptides to support the skin before and after dermatological and aesthetic procedures.

By combining the two brands, Galderma will be able to provide more comprehensive coverage of both daily skincare and care relating to medical and aesthetic treatments in future, it is said.

The group expects this to bring additional growth opportunities and a stronger position amongst dermatologists, plastic surgeons and other specialists.

ZO Skin Health was founded by dermatologist Zein Obagi and is headquartered in Irvine, California.

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Translated from German, reviewed by an English Department journalist.