Acme United Corporation Acquires Manufacturing and Distribution Facility in Tennessee

Rhea-AI Summary

Acme United Corporation (NYSE American: ACU) has acquired a manufacturing and distribution facility in Mt. Pleasant, Tennessee for $6 million. The facility features 77,000 square feet of manufacturing and warehouse space on 12 acres, with potential expansion capacity of up to 60,000 additional square feet.

The FDA-approved, food-grade facility will primarily serve Spill Magic, a subsidiary acquired in 2017 that has outgrown its current leased space. Spill Magic specializes in bodily fluid and spill clean-up solutions, providing absorbent powder and complete spill response systems to various sectors including retail, food service, and industrial markets.

The company plans to implement capital improvements focused on automation to transform the site into one of its most advanced and efficient operations.

Positive

• Strategic acquisition of 77,000 sq ft facility with 60,000 sq ft expansion potential
• FDA-approved facility specifications add operational value and versatility
• Planned automation investments to enhance operational efficiency
• Eliminates lease expenses for Spill Magic operations
• Supports growth of successful Spill Magic subsidiary

Negative

• $6 million capital expenditure impacts cash position
• Additional investment required for planned automation and improvements
• Potential integration and transition costs from current leased facility

Insights

Corporate Investment Analyst

Acme United's $6M facility acquisition provides growth infrastructure for Spill Magic, enhancing operational efficiency through automation while reducing lease expenses.

Acme United's $6 million purchase of a 77,000 square foot facility in Tennessee represents a strategic infrastructure investment to support the growth of its Spill Magic business unit. The acquisition addresses a concrete operational need, as the press release explicitly notes that Spill Magic has outgrown its currently leased space.

This transaction offers multiple operational advantages. First, it transitions the company from a lease expense to an owned asset, potentially improving long-term cost structure. Second, the property includes 12 acres with expansion capacity for an additional 60,000 square feet, providing significant future growth runway. Third, the facility already meets FDA-approved food-grade specifications, which aligns with Spill Magic's focus on cleanup solutions used in food service environments.

Management's announced plans to invest in automation at this facility indicate a focus on operational efficiency and margin improvement. This modernization effort could potentially reduce labor costs and increase production capacity, supporting greater scale for the Spill Magic product line, which focuses on absorbent powder for spill cleanup in retail, grocery, and industrial settings.

The vertical integration of Spill Magic's operations through this acquisition appears to be part of Acme United's broader strategy to strengthen infrastructure for businesses they've acquired, as they purchased Spill Magic in 2017. This move suggests confidence in the continued growth potential of this business unit within Acme's diverse portfolio of safety and cutting technology brands.

SHELTON, Conn., July 15, 2025 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) announces the purchase of a manufacturing and distribution center in Mt. Pleasant, Tennessee for approximately $6 million.

The property consists of 77,000 square feet of manufacturing and warehouse space on 12 acres and is designed to be expanded by up to an additional 60,000 square feet. The facility is fully air conditioned and is built and maintained to meet FDA-approved food-grade specifications. The facility will primarily be used by Spill Magic, which Acme United acquired in 2017 and which has outgrown one of its currently leased spaces.

Walter C. Johnsen, Chairman and CEO, said, “We’re thrilled to be growing the Spill Magic business and to be putting a strong infrastructure in place to fuel its continued success. We plan to invest in capital improvements focused on automation, positioning this site to become one of our most advanced and efficient operations. We’re proud to become part of the Mt. Pleasant, Tennessee community.”

Spill Magic is a leader in bodily fluid and spill clean-up solutions with a lightweight, absorbent powder that quickly encapsulates a spill. The Spill Response System provides all the necessary tools to effectively clean up spills, saving time, money and reducing slip & fall accidents in various venues, including grocery, retail, and big box stores; food service & hotel chains; municipal facilities; and industry-specific distributors in the U.S.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Spill Magic®, Westcott®, Clauss®, DMT®, Med-Nap, Safety Made and Elite. For more information, visit www.acmeunited.com.  

Forward Looking Statements
The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “except,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations.

Forward-looking statements in this report, including without limitation, statements related to the company’s plans, strategies, objectives, expectations, intentions, and adequacy of capital and other resources are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties. We are also subject to additional risks and uncertainties as described in our periodic filings with the Securities and Exchange Commission.

CONTACT:		Paul G. Driscoll		Acme United Corporation Phone: (203) 254-6060		1 Waterview Drive FAX: (203) 254-6521		Shelton, CT 06484

FAQ

How much did Acme United (ACU) pay for the Tennessee facility?

Acme United paid approximately $6 million for the manufacturing and distribution facility in Mt. Pleasant, Tennessee.

What is the size of ACU's new Tennessee facility?

The facility consists of 77,000 square feet of manufacturing and warehouse space on 12 acres, with potential expansion capacity of up to 60,000 additional square feet.

What will Acme United use the new Tennessee facility for?

The facility will primarily be used by Spill Magic, ACU's subsidiary that produces spill clean-up solutions and has outgrown its current leased space.

What improvements does ACU plan for the new facility?

ACU plans to invest in capital improvements focused on automation, aiming to make this site one of their most advanced and efficient operations.

When did Acme United acquire Spill Magic?

Acme United acquired Spill Magic in 2017.