Swiss skincare group Galderma announced on Wednesday, October 14, that it has agreed to acquire California-based ZO Skin Health for an enterprise value of USD 1.5 billion (EUR 1.3 billion), strengthening its position in medical skincare.
Galderma has signed an agreement to acquire 100% of the dermatological skincare company in an all-cash transaction from its shareholders, including funds managed by investment firm Blackstone and members of the Obagi family, the Swiss group said in a press release.
The transaction is expected to close by the end of 2026 or in early 2027.
Founded in 2007 by Dr. Zein Obagi, ZO Skin Health is headquartered in Irvine, south of Los Angeles. It manufactures skincare products sold in around 40 countries, primarily through physicians and medical spas. The privately held company generated annual revenue of USD 330 million as of June 2026, according to Galderma.
The Swiss group, owner of brands including Cetaphil and Alastin, highlighted the “high complementarity” of the two companies’ product portfolios. The acquisition will strengthen its position in the “attractive and rapidly growing segment of physician-administered skincare,” it said.
In a market note, Stefan Schneider, an analyst at Vontobel, described the deal as making sense from both a strategic and a financial perspective. Transactions in the sector typically command enterprise value-to-sales multiples of around 3.6 times, although valuations can be higher for high-margin beauty and skincare brands, he noted.
Galderma said the acquisition is expected to have a slight dilutive effect on its EBITDA margin in 2027, before contributing to a recovery from 2028 onwards.
Based in Zug, central Switzerland, Galderma develops and manufactures injectable wrinkle treatments, skin-cleansing products and dermatological medicines. The group reported revenue of USD 5.2 billion in 2025.
Galderma originated as a joint venture established by L’Oréal and Nestlé in 1981. In 2014, Nestlé acquired L’Oréal’s stake, making Galderma a wholly owned subsidiary focused on skincare. Nestlé sold the business to a consortium of investors in 2019. Galderma was listed on the SIX Swiss Exchange in March 2024. L’Oréal acquired a 10% stake a few months later and doubled its holding to 20% in 2025.
