Blackstone Explores ZO Skin Health Sale at Around $2 Billion Valuation

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Summary · why it matters

Blackstone is exploring a sale of ZO Skin Health that could value the physician-dispensed skincare brand at around $2 billion, Reuters reported this week, citing people familiar with the matter. Founded in 2007 by dermatologist Dr. Zein Obagi, ZO built its business not through influencers or department stores but through dermatologists and medical-aesthetics practices, and in 2012 it launched physician affiliate and revenue-sharing programs that let participating doctors earn commissions when patients replenished products through physician-linked virtual stores. Nearly 40% of ZO Skin Health customers at medical-aesthetics practices made a repeat ZO purchase in 2025, according to Guidepoint Qsight's 2026 Aesthetic Industry Impact Players report, the highest patient-retention rate among the leading professional-grade skincare brands in its analysis. By 2016, ZO said, it had become the No. 1 physician-dispensed medical skincare brand in the European Union, though as a private company it does not disclose annual sales; public filings from Cutera, ZO's former distributor in Japan, showed $34 million in revenue from ZO skincare products in Japan in 2023, down from $42.5 million in 2022, representing 16% and 17% of Cutera's total revenue, respectively. Blackstone acquired a majority stake in ZO in 2020, when Senior Managing Director Todd Hirsch called it one of the fastest-growing brands in the rapidly expanding professional skincare market.

Impact on assets 4

Consumer Staples▲ · 3 stocks
Artificial Intelligence▲ · 1 stocks
Blackstone Group Inc
BX
± MixedCapitalrelevance

Blackstone is exploring a sale of portfolio company ZO Skin Health at around a $2 billion valuation, a potential exit of its 2020 majority stake.

Off-coverage companies 2

ZO Skin HealthPrivate± Mixed
Capitalrelevance

Blackstone is exploring a sale of ZO Skin Health that could value the private skincare brand at around $2 billion.

Cutera, Inc.Private▼ Negative
Demandrelevance

Cutera's filings show ZO skincare product revenue in Japan fell to $34 million in 2023 from $42.5 million in 2022, a declining distribution contribution.

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