ACU - Acme United Corporation Sells Hunting And Fishing Product Lines | Benzinga
SHELTON, Conn., Nov. 01, 2023 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE:ACU) today announced that it has sold its Camillus and Cuda hunting and fishing product lines to GSM Holdings, Inc.
The sales price was $19.8 million. Acme United will recognize an after-tax gain on the sale of approximately $10.0 million during the fourth quarter of 2023. The revenues of the divested product lines were approximately $12.0 million in 2022.
Walter C. Johnsen, Chairman and CEO, said, "The sale will allow us to place an increased focus on our primary product lines. The Company intends to use the net proceeds of the sale to pay down approximately $15.0 million of bank debt. We expect the sale to be approximately earnings breakeven after elimination of expenses associated with the Camillus and Cuda product lines and interest savings resulting from reduction of bank debt."
"We believe that GSM Holdings provides an outstanding platform to service the Camillus and Cuda customers and to expand in the fishing, hunting, and camping markets in the U.S., Canada, and Europe. We look forward to working with GSM to help to ensure a smooth transition."
D.A. Davidson & Co. served as exclusive financial advisor to Acme United Corporation on the sale of its Camillus and Cuda product lines.
About Acme United
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 ...