Blackstone weighs sale of ZO Skin Health

NEW YORK, Sept 8 (Reuters) - Investment firm Blackstone is evaluating a potential sale of ZO Skin Health, a medical-grade skincare brand that could be valued at roughly $2 billion, according to individuals familiar with the matter.

The process, which is still in its early stages, is being handled with the assistance of investment bankers from Citigroup and Raymond James, the sources added, asking not to be identified as the details are not public.

Representatives for Blackstone and Citigroup declined to provide comment, while ZO Skin Health and Raymond James had not immediately responded to requests for comment.

The brand was established in 2007 by dermatologist Dr. Zein Obagi. ZO offers a range of skincare items such as cleansers, serums, exfoliators, and toners, which are made available through doctors and skincare specialists.

The move to sell reflects a broader trend in which strategic acquirers are focusing on clinically validated, physician-distributed skincare labels such as ZO, which appeal due to their effectiveness and more predictable demand relative to consumer retail products.