On June 1, Waldencast announced that it has entered into a definitive agreement to sell its dermatological skincare and aesthetics business, Obagi Medical, to private investment firm Bridgepoint.
The transaction is valued at up to $460 million and marks a significant step in Waldencast’s strategy to strengthen its balance sheet while concentrating resources on accelerating the global growth of its remaining brand, Milk Makeup.
Summary
- Waldencast has entered into a definitive agreement to sell Obagi Medical to Bridgepoint
- The transaction is valued at up to $460 million and is expected to close in the third quarter of 2026
- Following the sale, Waldencast will focus its resources on accelerating the growth of Milk Makeup
- Founders Michel Brousset and Hind Sebti are expected to transition to Obagi Medical following the completion of the transaction
- The deal highlights ongoing portfolio restructuring within the beauty industry and growing investor interest in dermatology and aesthetics
Portfolio Restructuring Signals a New Growth Phase
Founded in 2019 by Michel Brousset and Hind Sebti, Waldencast was established as a beauty and wellness platform dedicated to acquiring, building, and scaling high-growth brands.
The sale of Obagi Medical represents a strategic move aimed at strengthening the company’s financial position and streamlining its portfolio. Upon closing, Waldencast intends to repay approximately $178 million of its outstanding senior secured term loan while continuing to invest in Milk Makeup as its primary growth platform.
Bridgepoint Bets on Obagi Medical’s Momentum
Founded in 1988, Obagi Medical has established itself as one of the leading physician-dispensed skincare brands in the world. Known for its science-backed formulations, the brand addresses a range of skin concerns, including hyperpigmentation, photodamage, acne, sun damage, and signs of aging.
Since being acquired by Waldencast in 2022, Obagi Medical has expanded its direct-to-physician business, strengthened its digital presence, and accelerated international growth, contributing to a significant improvement in profitability.
In 2025, the company further expanded into medical aesthetics through the acquisition of Novaestiq. The move led to the launch of the FDA-approved Obagi Saypha® MagIQ™ dermal filler line in the first quarter of 2026, broadening the brand’s reach within the aesthetics market.
Bridgepoint cited Obagi Medical’s scientific heritage, strong physician relationships, and leadership position in the rapidly growing dermatology and aesthetics sector as key drivers behind the acquisition.
Founders to Transition With the Brand
Following the completion of the transaction, Waldencast Founder and CEO Michel Brousset and Co-Founder and Chief Growth Officer Hind Sebti, along with selected members of the management team, are expected to leave Waldencast and continue leading Obagi Medical in partnership with Bridgepoint.
Commenting on the transaction, Brousset and Sebti said: “We founded Waldencast with a clear vision — to build a best-in-class beauty and wellness platform that creates and scales high-growth, purpose-driven brands. We are proud of the transformation and growth we delivered at both Milk Makeup and Obagi Medical. We will focus on the next chapter for Obagi Medical alongside Bridgepoint, a partner that shares our long-term ambition for the brand: to build the number one dermatological mega-brand uniquely positioned to serve the beauty and wellness needs of physicians, patients, and consumers worldwide.”
Milk Makeup Becomes the Sole Operating Focus
The transaction effectively transforms Waldencast into a company centered around Milk Makeup.
Founded in 2016, Milk Makeup has built a strong following among younger consumers through its inclusive brand positioning and “Live Your Look” philosophy. The brand has gained cultural relevance through a series of viral product launches and was ranked by Sephora as the second-largest clean beauty makeup brand in the United States in 2025.
In recent years, Milk Makeup has expanded its retail presence through Ulta Beauty while continuing to grow across Europe, Asia, and Latin America.
Felipe Dutra, Chairman of the Waldencast Board, commented: “Following a comprehensive strategic review, the Board believes this transaction represents the best path forward for Waldencast and its shareholders. The sale meaningfully strengthens the Company’s balance sheet and enables a sharper strategic focus on Milk Makeup, a brand with significant global growth potential.”
A Strategic Shift Reflecting Broader Industry Trends
The transaction reflects a broader trend within the beauty industry, where platform companies are increasingly concentrating capital and management attention on their highest-growth assets.
By divesting Obagi Medical, a mature and established player in professional skincare and aesthetics, Waldencast is positioning itself to pursue a more focused growth strategy centered on Milk Makeup’s global expansion and younger consumer base.
For Bridgepoint, the acquisition deepens its exposure to the rapidly expanding dermatology and aesthetics market. As demand for physician-led skincare and aesthetic treatments continues to rise globally, industry observers will be watching closely to see how Obagi Medical evolves under its new ownership.
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