Blackstone considers sale of ZO Skin Health, sources say

• ZO Skin Health, founded by dermatologist Dr. Zein Obagi in 2007, sells medical-grade skincare products distributed exclusively through physicians and skincare professionals
• The potential $2 billion valuation reflects growing buyer appetite for clinically backed, physician-distributed brands over traditional retail skincare products
• Citigroup and Raymond James are serving as investment banking advisors on the sale, which is still in early stages

Summary: Blackstone Considers $2 Billion Sale of ZO Skin Health

Key Transaction Details:

Blackstone is exploring the sale of medical-grade skincare company ZO Skin Health, with an estimated valuation of approximately $2 billion. The investment firm has engaged Citigroup and Raymond James as financial advisors for the sale process, which is currently in early stages.

Company Background:

ZO Skin Health was founded in 2007 by dermatologist Dr. Zein Obagi. The company manufactures and sells medical-grade skincare products including cleansers, serums, exfoliators, and toners distributed exclusively through physicians and skincare professionals.

Market Context:

The timing of this sale aligns with growing strategic buyer interest in physician-distributed, clinically backed skincare brands. These products are attracting premium valuations due to their demonstrated efficacy and more stable demand patterns compared to over-the-counter alternatives.

Sector Implications:

The potential $2 billion valuation underscores the strength of the medical-grade skincare segment within the broader beauty and personal care industry. This transaction reflects continued private equity activity in the healthcare and consumer sectors, with strategic acquirers seeking differentiated brands with professional distribution channels.

The deal would represent another significant exit for Blackstone in the consumer healthcare space, though neither Blackstone, Citigroup, ZO Skin Health, nor Raymond James provided official comments on the process. The outcome and timing of any potential transaction remain uncertain given the early stage of discussions.