Acme United Corporation Acquires Assets of Med-Nap LLC

Rhea-AI Summary

Acme United Corporation has acquired the assets of Med-Nap LLC, a notable manufacturer of antiseptic products, such as alcohol prep pads and wipes. The acquisition is expected to enhance Acme United's product offerings and is projected to be accretive from Q1 2021. Med-Nap generated approximately $4.9 million in revenue and $1.0 million in EBITDA in 2020. The deal strengthens Acme's manufacturing capabilities and expands its product lines for retail, industrial, and medical markets. The purchase price remains undisclosed.

Positive

• Acquisition of Med-Nap enhances product offerings and market presence.
• Expected accretive impact starting Q1 2021.
• Strengthened manufacturing capabilities with an FDA-registered facility.

Negative

• None.

Provides World-Class Antiseptic Prep Pad and Towelette Solutions

FAIRFIELD, Conn., Dec. 16, 2020 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that it has acquired the assets of Med-Nap LLC., a leading manufacturer of alcohol prep pads, alcohol wipes, benzalkonium chloride wipes (BZK), antiseptic wipes, castile soap, and lens cleaning products.

Med-Nap has estimated revenues in 2020 of approximately $4.9 million and EBITDA of approximately $1.0 million. The purchase price was not disclosed. The acquisition is expected to be accretive commencing in the first quarter of 2021. The company, based in Brooksville, Florida, was founded in 2007 and employs 25 people.

Walter C. Johnsen, Chairman and CEO, said, “The acquisition of Med-Nap’s business provides our company with an FDA-registered manufacturing facility in the U.S. for antiseptic wipes and pads that are used in all our first aid kits and refills. In addition, it adds new product lines of alcohol wipes that are sold to the retail, industrial, and medical markets to meet cleaning and sterilization needs now and post pandemic. We look forward to expanding production to fulfill current requirements as well as that of future new products and customers.”

Mr. Johnsen continued, “We are delighted to welcome the Med-Nap team to Acme United and look forward to building our business with them.”

Pierre Sanfacon, Founder and President of Med-Nap, added, “I, too, am very pleased with our combination with Acme United. I see a major opportunity working together and look forward to our expansion.”

Further information on Med-Nap is available at its website, www.mednap.us

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®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, and DMT®. For more information, visit www.acmeunited.com.

Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of 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 including, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits; (iv) the impact of competition and technological changes on the Company; (v) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vi) currency fluctuations; (vii) increases in the cost of borrowings resulting from rising interest rates; (viii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (ix) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

CONTACT:
Paul G. Driscoll
Acme United Corporation
55 Walls Drive
Fairfield, CT 06824
Phone: (203) 254-6060
FAX: (203) 254-6521

FAQ

What is the significance of Acme United's acquisition of Med-Nap LLC?

The acquisition expands Acme United's product offerings in antiseptic solutions and strengthens its market position.

What were Med-Nap's estimated revenues before the acquisition by Acme United?

Med-Nap reported estimated revenues of approximately $4.9 million in 2020.

When is the acquisition of Med-Nap expected to impact Acme United's earnings?

The acquisition is expected to be accretive to earnings starting in the first quarter of 2021.

How does the acquisition benefit Acme United's product line?

It adds new product lines, including alcohol and antiseptic wipes, for various markets including retail and medical.