Dermatology company Galderma (SIX:GALD) announced on Wednesday that it has agreed to acquire 100% of ZO Skin Health, a physician-dispensed skincare brand, for an enterprise value of USD1.5bn in an all-cash transaction.

Founded by dermatologist Dr. Zein Obagi and headquartered in Irvine, California, ZO Skin Health offers more than 40 products distributed through over 16,500 physician, medical spa and online accounts across more than 40 countries. The company generated net sales of approximately USD330m in the 12 months to June 2026.

This acquisition will expand Galderma's Dermatological Skincare portfolio, which includes Cetaphil and Alastin, by adding ZO Skin Health's science-based daily skincare regimens to Alastin's peptide-based pre- and post-procedure products.

Galderma expects to leverage its global presence, research and development capabilities, skincare education and commercial infrastructure to support ZO Skin Health's growth and expand its reach among healthcare professionals and patients.

Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in the fourth quarter of 2026 or early 2027.

Galderma plans to increase commercial investment during the first year of ownership, targeting renewed growth from the second year after closing. The acquisition is expected to be neutral to core earnings per share in the first full year following closing, slightly dilute the group's core EBITDA margin in 2027 and deliver a margin broadly in line with the group average from 2028 onward.