The story
Before 1960s
Acme United has roots dating back to 1867 when German immigrant Leo Renz bought an old grist mill in Naugatuck, Connecticut. 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.
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, 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. 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.
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, Acme lost over $20 million in annual sales. In a struggle to survive, it took over several companies in the US and abroad, however with varying success.
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.
Walter C. Johnsen joined the company early 1995 as a board member and became CEO later that same year. He had previously been vice chairman and a principal of Marshall Products, Inc., a medical supply distributor that he and a partner acquired in a leveraged buyout. Marshall had been purchased by Omron Corporation, to become the North American arm of its medical business.
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In the following years, Johnsen recruited a new management team, sold the medical business to Medical Action Industries and closed seven manufacturing plants. Brian Olschan joined as senior vice president of sales and marketing, and later became chief operating officer.
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. 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 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.
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. 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.
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.
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. 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.
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.
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.
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.
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.
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.
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.
On November 1st, 2023, Acme United sold its Camillus and Cuda hunting and fishing product lines to GSM Holdings, Inc for $19.8 million.
From Wikipedia’s article on Acme United Corporation, shared under CC BY-SA 4.0.6