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Dive Brief:
Church & Dwight on Monday announced it has agreed to acquire hand sanitizer brand Touchland in a deal worth $880 million.
The deal agreement consists of $700 million in cash and Church & Dwight stock plus $180 million dependent on Touchland reaching its net sales goals, according to a news release.
The agreement between the two companies is expected to close in the second quarter.
Dive Insight:
Founded in 2018 by Andrea Lisbona and Ruggero Grammatico, Touchland became known for its brightly colored hand sanitizers. By 2021, the brand had a value of $11.5 million.
Touchland — which has grown to be the No. 2 hand sanitizer brand, according to Monday’s announcement — has increased its product mix over the years, adding close to 20 scents to its sanitizers and a full line of body and hair fragrance mist products. Net sales for the trailing 12 months through March 31 were about $130 million, per the release. Touchland primarily does business in the U.S. and Canada, but has recently expanded to the Middle East through a partnership with Sephora.
“Touchland has built a loyal consumer base through its differentiated consumer proposition and is driving growth in the hand sanitizer category,” Church & Dwight CEO Rick Dierker said in a statement. “The brand skews towards younger consumers and already has a high level of brand loyalty and repeat purchase in line with category leaders.”
Speaking to analysts and investors on a conference call, Dierker cited Touchland’s marketing and product presentation as reasons for the brand’s success. “The packaging is fantastic,” he said. “It’s easy, it’s an on-the-go mentality, it’s a convenience which consumers really appreciate. So, now it’s not just a product, it’s a brand.”
As far as expanding the brand into other related categories, Dierker said it was a possibility with Touchland but that his company felt there was still a long runway for the brand to grow as a hand sanitizer in its key markets as well as new ones overseas.
“My vision is to have a Touchland product in the hands of every consumer,” Andrea Lisbona, founder and CEO of Touchland, said in a statement. “I am confident this vision will be accelerated by leveraging Church & Dwight’s expertise and scale to introduce Touchland to more consumers globally. Our journey is still in the early innings and Church & Dwight is the right partner to take Touchland through its next stage of growth.”