Blackstone Eyes $2 Billion ZO Skin Health Sale

Investment giant Blackstone is exploring the sale of medical-grade skincare company ZO Skin Health in a potential transaction that could value the business at around $2 billion, according to people familiar with the matter.

Blackstone has reportedly enlisted investment bankers from Citigroup and Raymond James to advise on the possible ZO Skin Health sale. The process remains in its early stages, and the sources requested anonymity because discussions are private.

Blackstone and Citigroup declined to comment on the potential transaction. Representatives for ZO Skin Health and Raymond James did not immediately respond to requests for comment.

ZO Skin Health was founded in 2007 by dermatologist Dr. Zein Obagi, who developed the company around professional and clinically focused skincare solutions. The brand offers a broad portfolio of products, including cleansers, serums, exfoliators and toners.

Unlike many mass-market beauty brands, ZO Skin Health primarily distributes its products through physicians and skincare professionals. That business model has helped position the company within the growing medical-grade and professional skincare market, where consumers are increasingly seeking products backed by clinical expertise.

A potential $2 billion valuation would underscore investor interest in premium skincare businesses with established professional distribution channels and strong brand recognition. Clinically backed skincare companies have become increasingly attractive to strategic buyers because they can benefit from more consistent consumer demand than some traditional over-the-counter beauty products.

Physician-distributed brands such as ZO Skin Health may also appeal to buyers seeking exposure to the expanding intersection of beauty, dermatology and medical aesthetics.

While Blackstone has started working with advisers, there is no indication that a transaction is imminent. The early stage of the sale process means the final valuation and potential buyers could still change as discussions progress.

If completed near the reported valuation, the ZO Skin Health sale would represent a significant transaction in the medical skincare sector and highlight continued dealmaking interest in clinically focused beauty brands.