Acme United sells hunting and fishing product lines for $19.8M

Acme United Corporation announced that it has sold its Camillus and Cuda hunting and fishing product lines to GSM Holdings, Inc. The sales price was $19.8M. Acme United will recognize an after-tax gain on the sale of approximately $10.0M during the fourth quarter of 2023. The revenues of the divested product lines were approximately $12.0M in 2022. Walter 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 $15.0M 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.”