Acme United Corporation

Acme United Corporation

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$73.3 million (2011)
Net income	US$2.81 million (2011)
Employees	135 (2011)
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) - $56.7 million, Canada - $8.5 million, and Europe - $8.1 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.

History

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 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 the company’s initial growth. Henry Wheeler,^[2], 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.^[3] The 1970s were also highlighted by further expansion in the medical field, with several new acquisitions and products.

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 decided to start manufacturing their 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]

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.^[8]

Walter C. Johnsen joined the company early 1995 as a Board member and became CEO later that same year.^[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] to become 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]

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.^[15] 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^[16] from Alco Industries in June of 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 earning reaching $3.2 million. In 2007, the company also 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. 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.^[18]

Corporate structure

Today, Acme United has five main brands: Westcott, Clauss, PhysiciansCare, Pac-Kit and Camillus.

Westcott

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 its product line with other office tools such as paper trimmers, pencil sharpeners, math kits, etc. The Westcott iPoint family of electric pencil sharpeners currently is Acme United’s best selling product, with sales reaching $10 million in 2010.

Clauss

Clauss primarily manufactures cutting instruments for the professionals in the hardware & industrial, lawn & garden, food processing, sewing and housewares markets. These products include True Professional sewing shears, utility knives, chef shears, hobby knives and craft implements.

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

PhysiciansCare offers a broad assortment of first aid kits, emergency and disaster kits, preparedness products and kit refills. PhysiciansCare also carries a branded line of over-the-counter medicines, including the ingredients aspirin, acetaminophen and Ibuprofen.

Acme United still uses the FDA compliant facility in Fremont, North Carolina, which it built in the 1960s to meet its growing demand for medical products, to distribute the PhysiciansCare products.

Pac-Kit

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

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.

Late 2011, the company signed an agreement with Les Stroud, known from the TV series Survivorman, to build and sell Camillus survival knives and tools, co-designed and promoted by the famous outdoor adventurer. The Les Stroud signature line will consist of knives and other survival tools.^[27]

Competition

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.

Key directors

Walter Johnsen - Chairman and CEO

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.

Brian Olschan - President and COO

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.

Paul Driscoll - Vice President and CFO

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.

See also

Companies portal

• Camillus Cutlery Company
• Clauss Cutlery Company
• Pac-Kit First Aid Kits
• PhysiciansCare First Aid and Medications
• Westcott Rule Company

References

External links

• Yahoo! - Acme United Corp. Company Profile
• Acme United Corp. Company Website
• Camillus Company Website
• Clauss Company Website
• PhysiciansCare Company Website
• Westcott Company Website
• Pac-Kit Company Website
• Medical Action Industries Inc. Company Website
• Alco Industries Inc. Company Website