| Type | Public NYSE Amex: ACU |
|---|---|
| Industry | Consumer products |
| Founded | Naugatuck, Connecticut (1867) |
| Headquarters | Fairfield, Connecticut, U.S. |
| Key people | Walter C. Johnsen (Chairman and CEO) Brian S. Olschan (President and COO) Paul G. Driscoll (Vice President and CFO) |
| Products | scissors, cutters, knives, rulers, first aid kits |
| Revenue | US$63.1 million (2010) |
| Net income | US$2.57 million (2010) |
| Employees | 132 (2010) |
| Subsidiaries | Westcott, Clauss, Camillus, PhysiciansCare, Pac-Kit |
| Website | AcmeUnited.com |
Acme United Corporation is a 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 1882 under the laws of the State of Connecticut. It is publicly traded on the NYSE Amex 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 in 2010 were: United States (including Asia) - $47.18 million, Canada - $7.72 million, and Europe - $8.24 million.[1]
The company’s customers include Staples, Office Depot, OfficeMax, United Stationers, SP Richards, W.B. Mason, Home Depot, Target, Wal-Mart, Walgreens, School Specialty, Grainger, McMaster-Carr, Meijer, Fred Meyer, Zellers, Schlecker, WH Smith, and many other major chains.
Contents |
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 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. It was the Wheeler family that was responsible for the company’s initial growth. By 1946 Acme Shear had become the world's largest maker of shears and scissors.
Henry Wheeler,[2] a third generation Wheeler, who had become president of Acme Shear in 1941, expanded the company in a number of directions. He established a subsidiary in the United Kingdom to sell directly to the European market. In 1965, the company introduced a line of disposable medical scissors and surgical instruments, which became so successful that a new manufacturing plant had to be opened to produce the medical equipment. In 1967 Acme did an initial public offering (IPO) and became a publicly traded company.
In the 1970s, Acme acquired Westcott Rule Company, which was founded in 1872 in Seneca Falls, New York. Because Westcott was a major ruler manufacturer, it was decided to change the company name to Acme United Corporation.[3] The 1970s were also highlighted by further expansion in the medical field, with new acquisitions and products.
Acme United faced rough times during the 1980s because it became too dependent on one customer: American Hospital Supply. When American Hospital decided to start manufacturing products themselves,[4] Acme lost over $20 million in annual sales. In a struggle to survive, it took over several companies[5][6] in the US and abroad, however with varying success.[7]
During the early 1990s Acme United continued to produce losses, which was reflected in the company’s share price. The stock, which had been trading around $25 in the 1980s sold for $3.[8]
Walter C. Johnsen joined the company as a Board member and became CEO in 1995.[9] He had previously been Vice Chairman and a principal of Marshall Products, Inc.,[10] a medical supply distributor that he and a partner acquired in a leveraged buyout. Marshall was purchased by Omron Corporation,[11] and became the North American arm of its medical business.
In the following years, Johnsen recruited a new management team,[12] sold the medical business to Medical Action Industries[13] and closed seven manufacturing plants. Brian Olschan joined as Senior Vice President of Sales and Marketing, and later became Chief Operating Officer.[14] Acme returned to profitability in 2000 when it reported a net income of $1.1 million.[15] It also started selling products to mass merchants such as Wal-Mart and Target.
In June 2004, the company acquired Clauss Cutlery[16] from Alco Industries. Founded in 1877 in Fremont, Ohio, Clauss manufactures scissors and cutting tools for the floral and industrial markets. And 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.[17]
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. Acme United 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.[18]
Today, Acme United has five main brands: Westcott, Clauss, PhysiciansCare, Pac-Kit and Camillus.
Westcott is a major brand for scissors and rulers in North America, and one of the strongest worldwide. Their scissors range from kids and student products to sewing, office, and craft items. Their rulers come in wood, plastic, stainless steel, acrylic and aluminum with plentiful designs, innovations and fashionable colors. Each year, Acme sells between 60 to 80 million scissors, and 15 to 18 million Westcott rulers.[19]
Following the success in scissors and rulers, Westcott extended to other precision office tools such as paper trimmers, pencil sharpeners, and math kits. A recent Westcott product is the iPoint Curve pencil sharpener.
Clauss primarily manufactures cutting instruments for the professional market. Recent product announcements include a comprehensive line of quality tools for professionals: True Professional sewing shears, utility knives, chef shears, hobby knives and craft implements. For the industrial market, Clauss has created a complete range of high-performance cutting tools.
The best selling Clauss product is the SpeedPak utility knife and its 10 titanium blades cartridge. Once the cartridge is inserted into the body of the SpeedPak, it works like a normal utility knife. However, when the blade is dull, the user simply pushes a button on the side, pulls the blade out, retracts the top button, and it automatically reloads another blade. In 2007, Acme United won a Good Design award from the Chicago Athenaeum for its SpeedPak utility knife.[20]
Late 2010, Clauss introduced two new lines of gardening tools. The Enviro-Line includes pruners, snips, floral knives, spring assisted scissors, while the AirShoc line are professional lawn & garden tools like loppers, hedge shears, branch saws and grass and garden shears.
PhysiciansCare offers a broad assortment of first aid kits, over-the-counter medicines, emergency and disaster kits, preparedness products and kit refills. The brand is expanding with a focus on comfort, ease-of-use and easy access.
Pac-Kit sells first aid kits, industrial stations and refills, emergency medical travel and recreational kits to the industrial, safety, transportation and marine markets.[18] Pac-Kit employs 33 people and produces its products in a 40,000 square foot FDA facility in Norwalk, CT.[21]
Pac-Kit has roots dating back to the 1800s as part of the Burroughs Wellcome Company. It was one of the first companies that began packaging medications and dressings into cases for use in the field. Many explorers of that time carried the cases with them on their expeditions.[22] Captain Robert Scott used it on his expedition to the South Pole, Admiral Byrd carried them on the first flight to the South Pole, Admiral Peary brought Pac-Kit first aid kits on both his North and South Pole flights and Nobel Prize winner Fridtjof Nansen had a Pac-Kit on his polar expeditions.[18]
Camillus, with roots dating back to 1876, is one of the best known brands in the knife industry.[23] It produced millions of knives until it filed for bankruptcy in 2007 due to fierce overseas competition.[24]
In May 2009, Acme United re-launched Camillus at the 2009 National Hardware Show in Las Vegas with a whole new family of knives.[25] The new Camillus knives have well designed, durable handles and the blades have a titanium carbonitride coating,[26] making them 10 times harder than stainless steel. The knives are sold at leading retailers and specialty knife shops.
The Company competes with many companies in each market and geographic area. The major competitor in the cutting category is Fiskars Corporation. The biggest competitor in the measuring category is Helix International Ltd. The major competitor in the safety category is Johnson and Johnson.
Mr. Johnsen has served as director since 1995 and as Chairman and Chief Executive Officer since November 30, 1995. Before joining the Company he was Vice Chairman and a principal of Marshall Products, Inc., a medical supply distributor.
Mr. Olschan served as Senior Vice President of Sales and Marketing from September 10, 1996 until February 22, 1999. On January 23, 1999, he was promoted to President and Chief Operating Officer. From 1984 to 1996, he was employed by General Cable Corporation in various executive positions.
Mr. Driscoll has served as Vice President and Chief Financial Officer, Secretary and Treasurer since October 2002. Mr. Driscoll joined Acme as Director International Finance in 2001. From 1997 to 2001 he was employed by Ernest and Julio Gallo Winery including two years in Japan as Director of Finance and Operations. Prior to Gallo he served in several increasingly responsible positions in Sterling Winthrop Inc. in New York City and Sanofi S.A. in France.