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Church & Dwight to Purchase Touchland, Boost Brand Portfolio
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Church & Dwight Co., Inc. (CHD - Free Report) has entered into a definitive agreement to acquire Touchland, a fast-growing hand sanitizer brand. This strategic acquisition strengthens Church & Dwight’s position in the personal care market and adds a dynamic, youth-focused brand to its expanding portfolio.
Church & Dwight intends to acquire the brand for $700 million at closing, paid through a mix of cash and restricted stock. The deal also includes an additional earn-out of up to $180 million based on Touchland’s 2025 net sales performance, bringing the total purchase price up to $880 million. The transaction is expected to close in the second quarter of 2025.
Touchland has quickly grown into the number two hand sanitizer brand in the United States, known for its sleek design, strong consumer loyalty and appeal to younger audiences. With this acquisition, Touchland becomes Church & Dwight’s eighth power brand. The deal aligns perfectly with CHD’s long-standing acquisition strategy, which focuses on brands that are category leaders, asset-light, growing rapidly and accretive to gross margins.
Inside CHD’s Move to Scale With Touchland
Touchland’s founders will continue to lead the brand from its Miami headquarters, while gaining the support of Church & Dwight’s scale and strategic resources. The brand has already begun expanding internationally, with products available in the United States and Canada, and recently launched in the Middle East through retailers like Sephora. CHD plans to build on this momentum by leveraging its global distribution network to drive even greater growth for Touchland.
Touchland reported $130 million in net sales and $55 million in EBITDA over the trailing 12 months ending March 31, 2025.
Its net sales are projected to grow at a double-digit rate in both 2025 and 2026. By 2026, the acquisition is expected to boost cash earnings by approximately 3%. With this deal in place, CHD’s strong balance sheet continues to provide the flexibility to pursue additional value-accretive acquisitions.
CHD Stock Past Three Months Performance
Image Source: Zacks Investment Research
What More Should Investors Know About CHD?
Church & Dwight’s strong brand equity provides the company with pricing power, allowing it to pass on cost increases to consumers with minimal impact on demand, thus supporting profitability. The company demonstrated strong brand performance, gaining market share in nine of its 14 major brands and achieving volume share growth in more than 80% of the business in the first quarter of 2025.
Church & Dwight benefits from a robust portfolio of trusted consumer brands, such as Arm & Hammer, Hero, Batiste, and Therabreath, which continue to deliver solid performance across various segments. These brands are household staples and personal care products, often regarded as essential goods, ensuring stable demand even during periods of economic uncertainty.
Church & Dwight announced it will divest or shut down the Flawless, Spinbrush and Waterpik showerhead businesses. These units represent approximately $150 million in net sales, or about 2% of total revenues, but are underperforming with below-average profitability. This move is intended to streamline the portfolio, focus on core brands and reduce tariff exposure.
Church & Dwight experienced margin pressure in the first quarter of 2025, primarily due to a combination of inflationary cost pressures, lower sales volume and tariff impacts. The company’s adjusted gross margin declined 60 bps year over year to 45.1%. While productivity gains and favorable product mix provided some relief, these were offset by elevated commodity costs, higher manufacturing expenses and foreign exchange headwinds.
In the past three months, shares of this Zacks Rank #4 (Sell) company have lost 9.4% against the industry’s growth of 0.2%.
The Zacks Consensus Estimate for Nomad Foods' current fiscal-year sales and earnings implies growth of 7% and 11.4%, respectively, from the prior-year levels. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on average.
Mondelez International, Inc. (MDLZ - Free Report) manufactures, markets and sells snack food and beverage products in Latin America, North America, Asia, the Middle East, Africa and Europe. It presently carries a Zacks Rank of 2 (Buy). MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Mondelez International’s current financial-year sales indicates growth of 4.9% from the year-ago numbers.
Oatly Group AB (OTLY - Free Report) , an oatmilk company, provides a range of plant-based dairy products made from oats. It presently carries a Zacks Rank of 2. OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on average.
The consensus estimate for Oatly Group’s current fiscal-year sales and earnings implies growth of 2% and 48.4%, respectively, from the year-ago figures.
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Church & Dwight to Purchase Touchland, Boost Brand Portfolio
Church & Dwight Co., Inc. (CHD - Free Report) has entered into a definitive agreement to acquire Touchland, a fast-growing hand sanitizer brand. This strategic acquisition strengthens Church & Dwight’s position in the personal care market and adds a dynamic, youth-focused brand to its expanding portfolio.
Church & Dwight intends to acquire the brand for $700 million at closing, paid through a mix of cash and restricted stock. The deal also includes an additional earn-out of up to $180 million based on Touchland’s 2025 net sales performance, bringing the total purchase price up to $880 million. The transaction is expected to close in the second quarter of 2025.
Touchland has quickly grown into the number two hand sanitizer brand in the United States, known for its sleek design, strong consumer loyalty and appeal to younger audiences. With this acquisition, Touchland becomes Church & Dwight’s eighth power brand. The deal aligns perfectly with CHD’s long-standing acquisition strategy, which focuses on brands that are category leaders, asset-light, growing rapidly and accretive to gross margins.
Inside CHD’s Move to Scale With Touchland
Touchland’s founders will continue to lead the brand from its Miami headquarters, while gaining the support of Church & Dwight’s scale and strategic resources. The brand has already begun expanding internationally, with products available in the United States and Canada, and recently launched in the Middle East through retailers like Sephora. CHD plans to build on this momentum by leveraging its global distribution network to drive even greater growth for Touchland.
Touchland reported $130 million in net sales and $55 million in EBITDA over the trailing 12 months ending March 31, 2025.
Its net sales are projected to grow at a double-digit rate in both 2025 and 2026. By 2026, the acquisition is expected to boost cash earnings by approximately 3%. With this deal in place, CHD’s strong balance sheet continues to provide the flexibility to pursue additional value-accretive acquisitions.
CHD Stock Past Three Months Performance
Image Source: Zacks Investment Research
What More Should Investors Know About CHD?
Church & Dwight’s strong brand equity provides the company with pricing power, allowing it to pass on cost increases to consumers with minimal impact on demand, thus supporting profitability. The company demonstrated strong brand performance, gaining market share in nine of its 14 major brands and achieving volume share growth in more than 80% of the business in the first quarter of 2025.
Church & Dwight benefits from a robust portfolio of trusted consumer brands, such as Arm & Hammer, Hero, Batiste, and Therabreath, which continue to deliver solid performance across various segments. These brands are household staples and personal care products, often regarded as essential goods, ensuring stable demand even during periods of economic uncertainty.
Church & Dwight announced it will divest or shut down the Flawless, Spinbrush and Waterpik showerhead businesses. These units represent approximately $150 million in net sales, or about 2% of total revenues, but are underperforming with below-average profitability. This move is intended to streamline the portfolio, focus on core brands and reduce tariff exposure.
Church & Dwight experienced margin pressure in the first quarter of 2025, primarily due to a combination of inflationary cost pressures, lower sales volume and tariff impacts. The company’s adjusted gross margin declined 60 bps year over year to 45.1%. While productivity gains and favorable product mix provided some relief, these were offset by elevated commodity costs, higher manufacturing expenses and foreign exchange headwinds.
In the past three months, shares of this Zacks Rank #4 (Sell) company have lost 9.4% against the industry’s growth of 0.2%.
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Nomad Foods Limited (NOMD - Free Report) manufactures, markets and distributes a range of frozen food products in the United Kingdom and internationally. It currently carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nomad Foods' current fiscal-year sales and earnings implies growth of 7% and 11.4%, respectively, from the prior-year levels. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on average.
Mondelez International, Inc. (MDLZ - Free Report) manufactures, markets and sells snack food and beverage products in Latin America, North America, Asia, the Middle East, Africa and Europe. It presently carries a Zacks Rank of 2 (Buy). MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Mondelez International’s current financial-year sales indicates growth of 4.9% from the year-ago numbers.
Oatly Group AB (OTLY - Free Report) , an oatmilk company, provides a range of plant-based dairy products made from oats. It presently carries a Zacks Rank of 2. OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on average.
The consensus estimate for Oatly Group’s current fiscal-year sales and earnings implies growth of 2% and 48.4%, respectively, from the year-ago figures.