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Galderma to Acquire ZO Skin Health for $1.5 Billion in Cash

NeutralMedium impact
GALDY$40.22 −0.07%GALDCHF 167.38 0.51%BX$109.98 −4.18%JPM$331.43 −0.86%

Swiss dermatology company Galderma Group AG (OTC:GALDY) has entered into an agreement to acquire California-based ZO Skin Health Inc. for $1.5 billion in cash. The sellers include investment funds managed by Blackstone Inc. (NYSE:BX) as well as the founding Obagi family.

The transaction enhances Galderma Group AG's footprint in the U.S. physician-dispensed skincare category. Financially, the purchase is expected to have a neutral impact on core adjusted earnings per share during its first full year following completion. Additionally, the funding structure aligns with the company's objective to maintain a solid investment-grade credit rating.

Investors will look for the transaction's formal closing and integration updates, along with any further details on financing. Advisory roles on the deal were filled by Lazard as lead financial advisor, JPMorgan Chase & Co. (NYSE:JPM) as financial advisor, and Ropes & Gray LLP as legal counsel to the buyer.

Key points

  • Galderma Group AG agreed to buy ZO Skin Health Inc. for $1.5 billion in an all-cash deal.
  • Sellers include funds managed by Blackstone Inc. and members of the founding Obagi family.
  • The deal aims to strengthen Galderma's position in the U.S. physician-dispensed skincare market.
  • The acquisition is projected to be core EPS neutral in its first full year after closing.
  • Lazard, JPMorgan Chase & Co., and Ropes & Gray LLP served as advisors to Galderma.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

How much is Galderma paying for ZO Skin Health?

Galderma is acquiring ZO Skin Health in an all-cash deal valued at $1.5 billion.

Who are the sellers in the ZO Skin Health deal?

ZO Skin Health is being acquired from shareholders including investment funds managed by Blackstone and the founding Obagi family.

How will the acquisition impact Galderma's earnings?

Galderma expects the acquisition to be core EPS neutral in the first full year following the close of the transaction.