Acme United Corporation

Acme United Corporation is an American supplier of cutting, measuring and safety products for the school, home, office, hardware and industrial markets. The company was organized as a partnership in 1867 and incorporated in 1873 under the laws of the State of Connecticut. It is publicly traded on the NYSE American with symbol ACU.

Acme United's operations are in the United States, Canada, Europe (located in Germany) and Asia (located in Hong Kong and China). The operations in the United States, Canada and Europe are primarily involved in product development, manufacturing, marketing, sales, administrative and distribution activities. The operations in Asia consist of sourcing, quality control and sales activities. Net sales for the year ended December 31, 2023 were $191.5 million, compared to $193.9 million in the year ended December 31, 2022, a decrease of 1%. Net income for the year ended December 31, 2023 was $17.8 million, or $4.86 per diluted share, compared to $3,035,000, or $0.86 per diluted share, in 2022.

The company's customers include Staples, Office Depot, OfficeMax, United Stationers, SP Richards, W.B. Mason, Home Depot, Target, Wal-Mart, Walgreens, Grainger, McMaster-Carr, Meijer, Fred Meyer, WH Smith, and many other major chains.

Etymology Acme (ακμή; English transliteration: akmē) is Ancient Greek for "(highest) point, edge; peak of anything", being used in English with the meaning of "prime" or "the best", initially when referring to a period in someone's lifeacme at etymonline.com. Accessed 19 Nov. 2022. and then extending to anything or anyone who reaches perfection in a certain regard.acme at Merriam-Webster online. Accessed 19 Nov. 2022.

History Before 1960s Acme United has roots dating back to 1867 when German immigrant Leo Renz bought an old grist mill in Naugatuck, Connecticut. Retrieved on October 15, 2012. He opened Renz Shear Shop and started the manufacture of scissors and cast iron shears. In 1873, Leo Renz, along with Robert and Mitchell Renz, and John Peck, officially incorporated their business as The Renz Shear Company. Retrieved on October 18, 2012.

In the 1880s the Company moved to Bridgeport, Connecticut, where it was incorporated as The Acme Shear Company. A few years later, the company was sold to the brothers David C. Wheeler and Dwight Wheeler, who were responsible for its initial growth. Henry Wheeler, Retrieved on March 27, 2009. the grandson of David C. Wheeler, became president of Acme Shear in 1941 and again expanded the company in a number of directions. Aided by World War II, Acme Shear became the world's largest maker of shears and scissors by 1946.

1960s and 1970s After the second World War, Acme Shear established a subsidiary in the United Kingdom to sell directly to the European market. It also introduced a line of disposable medical scissors and surgical instruments in 1965. This business became so successful that a new manufacturing plant in Fremont, North Carolina, had to be opened to meet demand. To mark its 100th anniversary, Acme Shear did an initial public offering (IPO) and as such became a publicly traded company in 1967.

In the 1970s, Acme acquired Westcott Rule Company, a major ruler manufacturer, which was founded in 1872 in Seneca Falls, New York. To better reflect the expanded product line, the company name was changed to Acme United Corporation. Retrieved on March 27, 2009. The 1970s were also highlighted by further expansion in the medical field, with several new acquisitions and products.

Acme United acquired the Canadian business Acme Ruler & Advertising Co out of Toronto, Ontario. This company was established in the 1890s and made rulers, blackboard triangles, protractors, etc. In 1980, the Canadian business's name was changed to Acme Ruler Company and in 1993 to its present name Acme United Limited. From this business unit, Acme United runs its entire Canadian operation. Retrieved on November 2, 2013.

1980s Despite continued growth during the 1960s and 1970s, Acme United faced rough times during the 1980s because it became too dependent on one medical tools customer, American Hospital Supply. When this company started manufacturing products itself, Retrieved on March 27, 2009. Acme lost over $20 million in annual sales. In a struggle to survive, it took over several companies Retrieved on March 26, 2009. Retrieved on March 24, 2009. in the US and abroad, however with varying success. Retrieved on March 28, 2009.

1990s During the early 1990s Acme United continued to suffer losses, which was reflected in the company's share price. The stock, which had been trading around $25 in the 1980s, now sold for only $3, leading to strong shareholder pressure to implement significant management changes. Retrieved on March 27, 2009.

Walter C. Johnsen joined the company early 1995 as a board member and became CEO later that same year. Retrieved on March 24, 2009. He had previously been vice chairman and a principal of Marshall Products, Inc., Retrieved on March 24, 2009. a medical supply distributor that he and a partner acquired in a leveraged buyout. Marshall had been purchased by Omron Corporation, Retrieved on March 26, 2009. to become the North American arm of its medical business.

In the following years, Johnsen recruited a new management team, Retrieved on March 22, 2009. sold the medical business to Medical Action Industries Retrieved on March 27, 2009. and closed seven manufacturing plants. Brian Olschan joined as senior vice president of sales and marketing, and later became chief operating officer. Retrieved on March 22, 2009.

By focusing on higher margin products such as student scissors, rulers and staplers, Acme United returned to profitability in 2000 when it reported a net income of $1.1 million. Retrieved on March 25, 2009. Additionally, it penetrated the office market by selling products to mass merchants such as Wal-Mart and Target.

2000s With financial results again improving, Acme United acquired Clauss Cutlery Retrieved on March 23, 2009. from Alco Industries in June 2004. Clauss, founded in 1877 in Fremont, Ohio, manufactured scissors and cutting tools for the floral and industrial markets. By 2004, Acme United's sales had risen to $43.4 million with earnings reaching $3.2 million.

In 2007, the company bought the brand names and intellectual property of Camillus Cutlery Company, one of the oldest knife manufacturers in the United States, for $200,000 in a bankruptcy auction.

In February 2011, Acme United acquired Pac-Kit Safety Equipment Company, a manufacturer of first aid kits for the industrial, safety, transportation and marine markets. The company purchased the accounts receivable, inventory, equipment, brands, historical records, and photographs for $3.4 million. Pac-Kit's revenues in 2010 were approximately $5.4 million. Retrieved on April 23, 2011.

And Acme United continued on its acquisition path. In June 2012, it acquired certain assets of The C-Thru Ruler Company, a well-known supplier of drafting, measuring, lettering and stencil products. Acme United purchased the inventory, tooling, brands, and other intellectual property for approximately $1.47 million. In 2011, C-Thru's revenues were about $2.5 million with gross profits reaching roughly $1 million. Retrieved on October 15, 2012. After Acme United acquired C-Thru Ruler Company in 2012, its products were integrated into the Westcott products family. So, the identity of C-Thru in many cases has become Westcott.

Late August 2013, Acme United purchased a 340,000 square feet manufacturing and distribution center in Rocky Mount, North Carolina, for $2.8 million. Before that, the company had two distribution centers, which, combined, were only half the size of the new one. The lease for one warehouse was terminated, and the second warehouse, in Fremont, North Carolina, was sold by Acme on April 7, 2014, for $850,000. Retrieved on January 26, 2015.

Because Acme United's first aid business showed strong growth in the industrial safety market and office channel, it acquired First Aid Only Inc., a supplier of first aid kits, refills, and safety products for $13.8 million in June 2014. In 2013, First Aid Only reached revenues of $17.4 million and operating income of $1.1 million. Retrieved on December 7, 2015.

Also in 2014, Acme United launched an entire line of fishing knives and tools under the new brand Cuda. About 30 tools, specifically designed for inshore and offshore fishing, were introduced at the International Convention of Allied Sportfishing Trades (ICAST), the largest sportfishing trade show in the world. Retrieved on December 9, 2015. At ICAST 2015, twenty additional tools for freshwater fishing were shown to the public for the first time. The market for freshwater tools is more than double the size of the salt water market. Retrieved on December 7, 2015.

In 2014 Acme United achieved record net sales and earnings. For the first time in the company's history, annual sales reached more than $100 million. Retrieved on December 9, 2015.

On February 1, 2016, Acme United acquired Diamond Machining Technology (DMT), a Marlborough, Massachusetts-based manufacturer of sharpening tools for knives, scissors, chisels and other cutting tools. Acme United paid $7.0 million in cash. DMT had revenues in 2015 of $5.4 million and EBITDA of approximately $1.0 million. Retrieved on March 28, 2016.

Exactly one year later, Acme United acquired Spill Magic Inc. for $7.2 million in cash. Spill Magic is a manufacturer of Spill Magic absorbents and related products that are used to prevent slip & fall accidents. Spill Magic had revenues in 2016 of $6.3 million and EBITDA of approximately $1.4 million. Retrieved on March 15, 2017.

On January 7, 2020, the Company purchased the assets of First Aid Central, located in Laval, Quebec, Canada. First Aid Central produces and sells a complete line of first aid kits, refills, and safety products to a broad range of industries and end users. Its products meet federal Health Canada and provincial regulatory requirements. The Company purchased the First Aid Central assets for $2.1 million in cash.

In December 2020, Acme United also acquired the assets of Med-Nap LLC., a Brooksville, Florida-based manufacturer of alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, antiseptic wipes, and other first aid products. Med-Nap has an FDA-registered manufacturing facility where it produces all of its products.

In June 2022, Acme United acquired Safety Made, a manufacturer of first aid kits for the promotional products industry. Based in Keene, New Hampshire, Safety Made had revenues in 2021 of approximately $4.9 million and EBITDA of approximately $1.2 million. The company employs 24 people. Retrieved on March 15, 2024.

Only five months later, Ready 4 Kits was acquired. Founded in 1996, and also based in New Hampshire, Ready 4 Kits custom designs logoed and imprinted first aid kits for promotional use across a number of categories and themes, including automotive, golf, disaster/survival, eco-friendly, health and wellness, outdoor and trade show/travel. Retrieved on March 15, 2024.

Late September 2023, Acme United acquired Hawktree Solutions, Inc., a supplier of first aid and survival kits, medical supplies, and training. Based in Laval, Canada Hawktree’s annual revenues in prior years averaged approximately $4.0 million. The Company was in receivership and the purchase price was approximately $1.0 million. Retrieved on March 15, 2024.

On November 1st, 2023, Acme United sold its Camillus and Cuda hunting and fishing product lines to GSM Holdings, Inc for $19.8 million. Retrieved on November 1, 2023.

Corporate structure Today, Acme United has nine main brands: Westcott, Clauss, PhysiciansCare, Pac-Kit, First Aid Only, Med-Nap, DMT, Spill Magic and Safety Made.

Westcott