Acme United buys facility in Tennessee for about $6M

Acme United buys facility in Tennessee for about $6M

Acme United Corporation (NYSE American: ACU) has acquired 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, with potential expansion capacity of up to an additional 60,000 square feet. The facility is fully air-conditioned and built to meet FDA-approved food-grade specifications [1].

The acquisition will primarily serve Spill Magic, a subsidiary acquired by Acme United in 2017, which 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 [2].

Walter C. Johnsen, Chairman and CEO of Acme United, expressed excitement about the acquisition, stating, "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" [1].

The acquisition addresses a concrete operational need and transitions the company from a lease expense to an owned asset, potentially improving long-term cost structure. The property includes 12 acres with expansion capacity for an additional 60,000 square feet, providing significant future growth runway. The facility already meets FDA-approved food-grade specifications, aligning with Spill Magic's focus on cleanup solutions used in food service environments [2].

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 [2].

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. This move suggests confidence in the continued growth potential of this business unit within Acme's diverse portfolio of safety and cutting technology brands [2].

References:
[1] https://www.globenewswire.com/news-release/2025/07/15/3115622/0/en/Acme-United-Corporation-Acquires-Manufacturing-and-Distribution-Facility-in-Tennessee.html
[2] https://www.stocktitan.net/news/ACU/acme-united-corporation-acquires-manufacturing-and-distribution-96pfuq32glc3.html