Blackstone Considers $2 Billion Exit from Skincare Firm ZO Skin Health
Blackstone is exploring a potential sale of its skincare company ZO Skin Health, which could fetch around $2 billion. The firm has enlisted Citigroup and Raymond James to assist in the early-stage process. Founded by dermatologist Dr. Zein Obagi, ZO sells medical-grade products through doctors and skincare professionals, giving it a premium clinical image that may attract strategic buyers. A successful exit would allow Blackstone to capitalize on rising demand for clinically backed skincare brands recommended by healthcare providers. This aligns with broader industry trends seen in recent high-profile acquisitions like L'Oréal's $4.7 billion purchase of Kering’s beauty business and Henkel’s acquisition of Olaplex. However, the valuation is not guaranteed as buyer interest may fall short or negotiations could result in a lower price than expected. Blackstone also faces trade-offs between selling now for immediate capital gains versus holding ZO to potentially benefit from future growth opportunities.
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