Blackstone Puts ZO Skin Health on the Sale Shelf at $2B
Synopsis
Blackstone is exploring a potential ZO Skin Health sale at about $2 billion. The physician-dispensed cosmeceuticals market is estimated at $9.07 billion globally in 2026.
Blackstone is considering selling ZO Skin Health, a physician-distributed skin care company, which could be valued at around $2 billion.
The company is in very early stages in the review of the sale process, facilitated by Citigroup and Raymond James. As of now, there is no identified suitor, and the deal has not been completed.
Blackstone Reviews ZO Skin Health Exit
Physician Zein Obagi founded the ZO Skin Health in 2007. The company provides creams, serums, exfoliants, and toners to dermatologists, estheticians, and other healthcare professionals.
Blackstone acquired a majority stake in the firm in October 2020 through the Tactical Opportunities business development platform. The deal was completed on October 2, 2020, with exact financial details remaining undisclosed.
The company is a private equity-owned entity, which means that it is not publicly traded and does not report its financials as a normal publicly traded company would; the $2 billion valuation is not based on its revenues, but rather a price tag put on it for the sale.
Blackstone and Citigroup declined to discuss the situation, while ZO Skin Health and Raymond James were not available for comment.
Physician-Dispensed Skincare Market Reaches $9.07 Billion
Physician-Dispensed Cosmeceuticals are gathering significant traction across the globe and are set to witness robust growth over the next five years, with the potential ZO Skin Health sale being a part of this trend.
According to Mordor Intelligence, the global Physician Dispensed Cosmeceuticals market is expected to grow from $8.35 billion to $9.07 billion in 2026 to $13.69 billion by 2031.
North America had the largest revenue share in 2025, accounting for 39.91%. The Asia-Pacific region is the fastest-growing region during the projected period, with a CAGR of 9.63%, to reach $4.69 billion by the end of 2031. Other significant regions include Europe, with a considerably lower revenue share, followed by South America, the Middle East, and Africa.
The physician-led segment accounts for ZO Skin Health, which Blackstone announced to be a California-based skincare company distributed worldwide by physicians and skincare estheticians in 2020.
The company remains privately owned by Blackstone Group, as the initial valuation has been discussed, although no final sale has occurred.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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