Galderma to buy US firm ZO Skin Health for $1.5 billion

ZURICH, Oct 14 (Reuters) - Swiss skincare firm Galderma has agreed to acquire US company ZO Skin Health for an enterprise value of $1.5 billion, it said on Wednesday, confirming a report published by Reuters earlier in the day.

The acquisition of the Irvine, California-based company is the biggest since Galderma floated on the stock market in early 2024, and will complement its science-backed skincare brand Alastin.

"We like the science, we like the location," said Galderma CEO Flemming Ornskov. "They're stronger in med spas than we are. We're more dermatologists and plastic surgeons." 

Galderma said the deal would expand its dermatological skincare offering in physician-dispensed skincare, a sector that Ornskov said was growing by about 5% to 8% a year.

The transaction is expected to close in the fourth quarter of 2026 or early 2027. The acquisition is expected to be neutral to Galderma's core earnings per share in the first full year after the transaction closes, the Swiss firm said.

ZO Skin Health logged net sales of around $330 million in the 12 months to June.

Asked whether Galderma could pursue more US acquisitions, Ornskov pointed to internal growth at the firm while noting it was keeping an eye open for things that could complement its portfolio.

"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," Ornskov said.

(Writing by Dave GrahamEditing by Linda Pasquini, Kirsten Donovan)