Church & Dwight to acquire Touchland for up to $880 million

EWING, N.J. - Church & Dwight Co., Inc. (NYSE:CHD), a major producer of household and personal care products, has entered into a definitive agreement to purchase the hand sanitizer brand Touchland. The deal, valued at $700 million at closing with an additional contingent payment of up to $180 million based on Touchland’s 2025 net sales, could reach a total of $880 million.

The acquisition is expected to close in the second quarter, subject to customary closing conditions. Touchland, known for rapid growth in the U.S. hand sanitizer market, stands as the second-leading brand in its category. For the trailing twelve months ending March 31, 2025, Touchland reported net sales of approximately $130 million and an EBITDA of about $55 million.

Church & Dwight’s CEO, Rick Dierker, expressed excitement about incorporating Touchland as their eighth "power brand" and is looking forward to partnering with founders Andrea Lisbona and Ruggero Grammatico to drive further growth. Dierker highlighted the brand’s appeal to younger consumers and its strong loyalty and repeat purchase rates.

The acquisition aligns with Church & Dwight’s strategic criteria, which includes leading brands that are asset-light and have growing margins. Touchland’s founders are set to remain with the company, continuing to operate the business from the Miami location and retaining its employees.

This transaction is anticipated to be neutral to Church & Dwight’s 2025 earnings per share (EPS), factoring in various costs and marketing investments. Touchland’s net sales are projected to grow by double digits in 2025 and 2026, with the acquisition expected to be 3% accretive to cash earnings in 2026.

Church & Dwight plans to leverage its capabilities to accelerate Touchland’s growth in select international markets, building on recent expansions into Canada and the Middle East. The company maintains a strong balance sheet, which it believes will allow for additional accretive acquisitions.

Touchland’s founder, Andrea Lisbona, expressed confidence that the partnership with Church & Dwight would accelerate the brand’s global reach and contribute to its next growth phase.

This news is based on a press release statement from Church & Dwight Co., Inc. and does not reflect any additional analysis or opinion.

In other recent news, Church & Dwight reported its first-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $0.91, slightly above the forecast of $0.90, but a revenue miss with $1.47 billion compared to the expected $1.51 billion. This revenue shortfall has led to a cautious full-year guidance, projecting organic sales growth between 0% and 2%. UBS analyst Peter Grom reduced the company’s price target to $102.00, citing lower sales and gross margins, while maintaining a Neutral rating. Jefferies analyst Kaumil Gajrawala also lowered the price target to $100, maintaining a Hold rating, due to a challenging outlook for 2025. TD Cowen downgraded Church & Dwight’s stock from Buy to Hold, reducing the price target to $100.00, highlighting the company’s slower growth compared to peers and minimal presence in high-growth international markets. The analysts emphasized Church & Dwight’s valuation premium over its peers, suggesting the stock might be overvalued given the current business outlook. These developments reflect the broader challenges Church & Dwight faces, including tariff impacts and weakening consumer spending.

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