Blackstone (BX) Eyes $2 Billion ZO Skin Health Exit

Blackstone, the private equity giant, is considering the sale of its medical skincare subsidiary ZO Skin Health. The skincare company, founded by dermatologist Dr. Zein Obagi, could be valued at approximately $2 billion according to Reuters. The potential sale is still in its preliminary stages and involves the participation of financial institutions Citigroup and Raymond James.

ZO Skin Health primarily sells its products like cleansers, serums, and exfoliators through medical professionals, giving the brand an edge over regular over-the-counter skincare products. The timing of this potential sale could work in Blackstone's favor as there is growing interest from strategic buyers in the skincare sector with a clinical angle.

If a deal is struck at the reported $2 billion valuation, it would provide Blackstone with a substantial opportunity to realize gains on its investment. Additionally, a successful exit would reinforce Blackstone's consumer healthcare and beauty strategy, showcasing the firm's ability to identify, nurture, and profitably sell strategically valuable businesses.