Business Combination

3 Months Ended

Mar. 31, 2026

12. Business Combination

On January 15, 2026, the Company acquired the assets of SLED Distribution, LLC. (d/b/a "My Medic"), a leading supplier of tactical, trauma and emergency response products, primarily in the direct-to-consumer channel, pursuant to an Asset Purchase agreement of the same date.

The purchase price of the acquisition was $18.6 million. At closing, the Company paid $14.4 million in cash to My Medic. Payment of the $4.1 million balance of the purchase price is subject to certain contingencies as follows: (a) $1,000,000, the payment of which is contingent upon the achievement of certain revenue milestones during the twelve months ended December 31, 2027; and (b) $3.1 million, which is subject to a holdback as a non-exclusive source of recovery primarily to satisfy indemnification claims under the Asset Purchase Agreement, which claims must be made within various time periods depending on the nature of the claim. The $3.1 million holdback and $1.0 million contingent payment are reported in other long term liabilities on the condensed consolidated balance sheet.

The preliminary purchase price was allocated to assets acquired as follows (in thousands):


Assets:
Accounts Receivable	$	238
Inventory		2,662
Prepaid Expense		223
Property, Plant & Equipment		21
Intangibles		15,409
Total assets	$	18,553

The acquisition was accounted for as a business combination, pursuant to ASC 805 – Business Combinations. All assets acquired in the acquisition are included in the Company’s United States operating segment. Management’s assessment of the fair values of assets acquired and liabilities assumed, including identifiable intangible assets and goodwill, is preliminary and subject to change during the measurement period (which will not exceed one year from the acquisition date). Adjustments to the preliminary allocation may result from additional information obtained regarding facts and circumstances that existed as of the acquisition date

The results of My Medic have been included in the Company’s condensed consolidated financial statements since the acquisition date. For the three months ended March 31, 2026, My Medic contributed revenue of $3.4 million.

- Definition

The entire disclosure for business combination.

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+ Details

ACME UNITED CORP 10-Q