Blackstone is exploring a sale of skincare company ZO Skin Health that could value the business at about $2 billion, putting the relatively low-profile brand in the same conversation as celebrity-backed names such as Rhode and Kylie Cosmetics.
ZO has built its business through dermatologists and medical-aesthetics practices rather than relying primarily on influencers, department stores or celebrity founders. The company was founded in 2007 by dermatologist Dr Zein Obagi.
It initially launched at Nordstrom, but later moved away from department-store retail and placed physicians at the centre of its distribution model. Products are now sold through ZO’s website and authorised providers, while some prescription products require a doctor.
The approach gives medical professionals a direct role in recommending products for conditions including acne, pigmentation and ageing skin. ZO products can also be used alongside procedures such as laser treatments, chemical peels and microneedling.
ZO introduced physician affiliate and revenue-sharing programmes in 2012, allowing participating doctors to earn commissions when patients replenished products through physician-linked online stores.
The company also provides training on treatment protocols, staff education and support for product launches and merchandising. Similar professional skincare strategies are used by rivals including L’Oréal-owned SkinCeuticals, AbbVie’s SkinMedica, Skinbetter Science and Alastin.
ZO Skin Health sale tests professional skincare model
Restricting distribution helps ZO maintain premium pricing while giving medical practices an incentive to continue offering its products. The company says it works to limit unauthorised sales to protect customers and the businesses of its physician partners.
There are signs that the model has helped create repeat demand. Almost 40% of ZO customers at medical-aesthetics practices made another purchase in 2025, according to Guidepoint Qsight’s 2026 Aesthetic Industry Impact Players report.
The report analysed transaction data covering more than $17 billion in verified patient spending from thousands of US aesthetics practices. Qsight said ZO recorded the highest patient-retention rate among the leading professional-grade skincare brands included in its analysis.
ZO has also developed recognition among patients despite its limited presence in mainstream retail. Dr Jeffrey Lisiecki, a New York plastic surgeon, said: “It’s been around for a long time, it’s got a lot of brand recognition, it’s a well-respected name in the skin care industry.”
He added that some of the brand’s products were particularly popular and that he received frequent requests for its sunscreen. “A lot of patients know of it and ask about it sometimes even before I’ve given someone their post-operative skincare regimen,” he said.
As a private company, ZO does not publish annual sales figures, making its overall scale difficult to assess. Figures reported by Cutera, its former distributor in Japan, showed $34 million in ZO skincare revenue in that market in 2023, compared with $42.5 million the previous year.
The Japanese figures do not represent ZO’s total sales there, but accounted for 16% of Cutera’s revenue in 2023 and 17% in 2022. The results indicate the brand was a significant part of the distributor’s business in that market.
Blackstone acquired a majority stake in ZO in 2020. At the time, its senior managing director Todd Hirsch described the company as “one of the fastest-growing brands in the rapidly expanding professional skincare market”.
A potential valuation of about $2 billion would underline the investment appeal of a business whose growth has been driven by physician recommendations, controlled distribution, international reach and repeat purchases rather than celebrity exposure.
