Exclusive-Galderma agrees to buy ZO Skin Health for around $1.5 billion, sources say

By Abigail Summerville

NEW YORK, Oct 13 (Reuters) - Swiss skincare conglomerate Galderma has agreed to buy medical-grade skincare company ZO Skin Health for around $1.5 billion, according to two people familiar with the matter.

A deal could be announced in the coming days, the people said.

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

ZO's owner, investment firm Blackstone, was exploring a sale of the company with investment banks Citigroup and Raymond James, Reuters reported last month. Blackstone declined to comment on Tuesday. 

The move by dermatology company Galderma, in which beauty giant L'Oréal owns a 20% stake, will expand its presence in the US market. In August, the company opened a US and Latin America headquarters in Miami. 

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

Many strategic buyers ​are prioritizing clinically backed, physician-distributed skincare brands like ZO because of their efficacy ⁠and ​steadier demand versus ​over-the-counter products.

Dermatologist ⁠Zein Obagi founded ZO in 2007. ZO sells skincare products including cleansers, serums, exfoliators and toners ​that are ​distributed by ⁠physicians and skincare professionals.

Blackstone acquired ZO through its tactical opportunities fund in 2020.

(Reporting by Abigail Summerville in New York; Editing by Echo Wang in New York and Jamie Freed)