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Shears Scissors Titanium

Acme United Corporation

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. It was the Wheeler family that was responsible for the company initial growth. By 1946 Acme Shear had become the world's largest maker of shears and scissors.

1960s and 1970s

Henry Wheeler, 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. The 1970s were also highlighted by further expansion in the medical field, with new acquisitions and products.

1980s

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, 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 produce losses, which was reflected in the company share price. The stock, which had been trading around $25 in the 1980s sold for $3.

Walter C.Johnsen joined the company as a Board member and later became CEO in 1995. 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 was purchased by Omron Corporation, and became the North American arm of its medical business.

In the following years, Johnsen recruited a new management team, sold the medical business to Medical Action Industries and closed 7 manufacturing plants. Brian Olschan joined as Senior Vice President of Sales and Marketing, and later became Chief Operating Officer. Acme returned to profitability in 2000 when it reported a net income of $1.1 million. It also started selling products to mass merchants such as Wal-Mart and Target.

In June 2004, the company acquired Clauss Cutlery from Alco Industries. Founded in 1877 in Fremont, Ohio, Clauss manufactures scissors and cutting tools for the floral and industrial markets. Acme United sales and earnings continued to improve over the years.

Corporate structure

Acme United products are organized under three main brands: Westcott, Clauss and PhysiciansCare.

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.

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

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.

A recent Clauss product is the SpeedPak 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.

PhysiciansCare

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.

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

Camillus Cutlery Company

Clauss Cutlery Company

Westcott Rule Company

References

^ "10-K. Acme United Corporation. 2009". edgar-online.com. http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6469373-8184-16446&type=sect&dcn=0001026608-09-000026.  Retrieved on March 25, 2009.

^ "Death of Henry C. Wheeler". allbusiness.com. http://www.allbusiness.com/company-activities-management/company-structures-ownership/6670772-1.html.  Retrieved on March 27, 2009.

^ "10-K. Acme United Corporation. 2007". secinfo.com. http://www.secinfo.com/dVahv.u17.d.htm.  Retrieved on March 27, 2009.

^ "American Hospital starts manufacturing medical instruments". nytimes.com. http://www.nytimes.com/1983/10/11/business/american-hospital.html?scp=4&sq;="american hospital"&st=cse.  Retrieved on March 27, 2009.

^ "Acme United acquires Emil Schlemper G.m.b.H.". nytimes.com. http://www.nytimes.com/1988/11/04/business/company-briefs-201988.html?scp=40&sq;="acme united"&st=cse.  Retrieved on March 26, 2009.

^ "Acme United acquires the Jason division of the Scott Fetzer Co.". nytimes.com. http://www.nytimes.com/1984/10/25/business/no-headline-40294.html?scp=72&sq;="acme united"&st=cse.  Retrieved on March 24, 2009.

^ "Acme United sells Altenbach business". allbusiness.com. http://www.allbusiness.com/manufacturing/housewares-furnishings-manufacturing/7221470-1.html.  Retrieved on March 28, 2009.

^ "Acme United - Historic stock chart.". marketwatch.com. http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=acu&sid=0&o_symb=acu&freq=2&time=20.  Retrieved on March 27, 2009.

^ "Walter Johnsen is appointed president and CEO". nytimes.com. http://www.nytimes.com/1995/11/25/business/executive-changes-061212.html?scp=41&sq;="acme united"&st=cse.  Retrieved on March 24, 2009.

^ "Career Walter Johnsen". forbes.com. http://people.forbes.com/profile/walter-c-johnsen/964.  Retrieved on March 24, 2009.

^ "Omron Corp. acquires Marshall Products Inc.". nytimes.com. http://www.nytimes.com/1990/01/23/business/briefs-988190.html?scp=2&sq;="marshall products"&st=cse.  Retrieved on March 26, 2009.

^ "New management team". allbusiness.com. http://www.allbusiness.com/company-activities-management/financial-performance/7271732-1.html.  Retrieved on March 22, 2009.

^ "Medical Action Acquires Medical Products Division of Acme United Corp.". allbusiness.com. http://www.allbusiness.com/company-activities-management/financial/6673887-1.html.  Retrieved on March 27, 2009.

^ "Acme United promotes Olschan to COO". allbusiness.com. http://www.allbusiness.com/company-activities-management/product-management/6743327-1.html.  Retrieved on March 22, 2009.

^ "Acme United reports fiscal year 2000 results". allbusiness.com. http://www.allbusiness.com/company-activities-management/financial-performance/6069529-1.html.  Retrieved on March 25, 2009.

^ "Acme United acquires Clauss Cutlery". allbusiness.com. http://www.allbusiness.com/company-activities-management/company-structures-ownership/5657825-1.html.  Retrieved on March 23, 2009.

^ "Interview with Walter Johnsen". seekingalpha.com. http://seekingalpha.com/article/94004-acme-united-corp-singular-research-s-annual-quot-best-of-the-uncovereds-quot-conference-presentation?page=2.  Retrieved on March 27, 2009.

^ "Acme United receives good design award". allbusiness.com. http://www.allbusiness.com/legal/banking-law-banking-finance-regulation/5328453-1.html.  Retrieved on March 24, 2009.

External links

Companies portal

Yahoo! - Acme United Corp. Company Profile

Acme United Corp. Company Website

Medical Action Industries Inc. Company Website

Alco Industries Inc. Company Website

American Hospital Supply, Inc. Company Website

Categories: Companies listed on the American Stock ExchangeHidden categories: Portal:Companies/Total
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