Core Viewpoint - Church & Dwight (C&D) is making a significant acquisition by purchasing Touchland, the second-largest hand sanitizer brand in the U.S., for $880 million (approximately 620 million RMB) to enhance its portfolio and target younger consumers [1][2][4]. Financial Details - The acquisition plan includes an upfront payment of $700 million (approximately 505 million RMB) and a performance-based earn-out of $180 million (approximately 129 million RMB) tied to Touchland's net sales performance in 2025 [2][3]. - Touchland's net sales for the past 12 months were approximately $130 million (approximately 93 million RMB), with an EBITDA of about $55 million (approximately 39 million RMB) [2][3]. - C&D reported a 4.1% increase in net sales to $6.107 billion (approximately 43.36 billion RMB) for 2024, exceeding its growth expectations [2][3]. Strategic Rationale - C&D aims to leverage its capabilities to accelerate Touchland's international market expansion and enhance product innovation [3][4]. - The acquisition aligns with C&D's long-term strategy of acquiring leading brands in high-growth categories with a light asset structure [11][12]. - Touchland's appeal to Gen Z and Alpha consumers complements C&D's existing portfolio and addresses gaps in its younger consumer engagement [3][4][13]. Historical Context - C&D has a history of successful acquisitions, with all six of its core brands acquired, contributing approximately 70% of its revenue and profit [5][6][7]. - Previous acquisitions include Hero Cosmetics for $630 million (approximately 454 million RMB), which has significantly increased its market share in the acne treatment segment [7][12]. Market Position - The U.S. hand sanitizer market is experiencing growth, with Touchland being one of the fastest-growing brands, indicating a strong potential for future revenue increases [2][3][12]. - C&D's strategic focus on acquiring top brands in niche markets has proven effective, as seen with the success of Hero Cosmetics, which grew its market share from 3.5% in 2022 to 21.7% in 2024 [12][13].