Acme United Corporation Sells Hunting And Fishing Product Lines For $19.8M; Will Recognize An After-tax Gain On The Sale Of ~$10M During Q4 Of 2023
Portfolio Pulse from Benzinga Newsdesk
Acme United Corporation (NYSE:ACU) has sold its Camillus and Cuda hunting and fishing product lines to GSM Holdings for $19.8 million. The company will recognize an after-tax gain of approximately $10 million in Q4 2023. The proceeds will be used to pay down about $15 million of bank debt. The sale is expected to be earnings breakeven after eliminating associated expenses and interest savings from debt reduction.
November 01, 2023 | 5:12 pm
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Acme United's sale of its product lines could lead to a healthier balance sheet due to debt reduction. However, the loss of these product lines may impact future revenues.
The sale will help Acme United reduce its debt, which is positive for the company's financial health. However, the divestment of these product lines, which generated $12 million in revenues in 2022, could potentially impact the company's future earnings.
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