Key facts
- Blackstone is seeking to sell its stake in ZO Skin Health.
- The potential valuation for ZO Skin Health is approximately $2 billion.
- Citigroup and Raymond James are advising Blackstone on the sale.
- ZO Skin Health was founded by Dr. Zein Obagi in 2007.
- The company distributes its products through physicians and skincare professionals.
Investment firm Blackstone is reportedly exploring the sale of medical-grade skincare company ZO Skin Health, with sources indicating a potential valuation of around $2 billion. The firm has engaged investment bankers from Citigroup and Raymond James to manage the early stages of the sale process.
ZO Skin Health, founded in 2007 by dermatologist Dr. Zein Obagi, offers a range of skincare products including cleansers, serums, exfoliators, and toners. These products are distributed through physicians and skincare professionals.
The potential sale comes at a time when strategic buyers are showing increased interest in clinically backed, physician-distributed skincare brands, recognizing their efficacy and consistent demand compared to over-the-counter alternatives. Blackstone previously acquired a majority stake in ZO Skin Health through its Tactical Opportunities segment, aiming to support its global growth. At that time, industry sources expected the business to achieve approximately $140 million in sales for the year.