Acme United Continues to Focus on Growth and Strategic Acquisitions in 2025

Acme United’s (US: ACU – $38.34) Q1 2025 results reflect a stable financial performance and a proactive approach to navigating global trade challenges.

The Company’s management has identified the prevailing international trade policies and tariff structures as potential catalysts for strategic acquisitions. By leveraging its strong financial position and operational efficiencies, the current tariff environment may present opportunities to acquire competitors, particularly those facing challenges due to increased import costs.

Moreover, despite the discomfort associated with tariff unpredictability, Acme United views this environment as a strategic opportunity to increase market share. With eight manufacturing facilities across the United States, the Company is positioned to produce competitively priced products.

Last month, it installed the first robotic system in its Rocky Mount, North Carolina plant. This system has four robots that process bulk antiseptic packets for the first aid product line, orients them for packaging, folds smart compliance boxes and fills them. This custom designed machine costs about $650,000, replaces seven employees and has less than a two-year payback. A second robotic system has been ordered for the Company’s Vancouver, Washington first aid plant.

Also the Spill Magic product line has increased substantially since Acme purchased it about five years ago. Its items include bodily fluid and blood borne pathogen cleanup kits, as well as general materials for removing fluids from spills. In fact, Spill Magic has grown so much that it has outgrown its current facility outside Nashville, Tennessee. The goal is to install automated powder transfer and filling equipment once a new site has been acquired.

With a solid start to 2025, Acme United continues to focus both on strategic growth initiatives and potential acquisitions that align with its core competencies.

We reiterate our buy recommendation for Acme United Corp. with a price target of $53.27 for 2025, which is 38% above today’s stock price.

Smallcaps.us Advice: Buy	Price Target: $53.27	Latest Company Report (pdf)
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