As a result, Orlandi will exit the scented strips category as of January 1, 2024, but will maintain its other sampling product offerings.
The purchase removes a competitor of Arcade Beauty's ScentStrip offerings, which allow brands to present fragrances in magazines, catalog inserts, direct mail and at retail.
Following the divestment, Orlandi will refocus on its other sampling technologies and scented retail product lines.
In the meantime, Arcade Beauty is leasing the now former Orlandi facility located at 7026 Discovery Drive, Chattanooga, TN 37416 to consolidate and relocate its existing laboratory and slurry production processes supporting Arcade Beauty's scented strips and label technologies.
"We are excited that we were able to come to this arrangement with Orlandi," said Jorge Garcia, Arcade Beauty's executive vice president and CFO. "This acquisition creates a necessary synergy that will protect this category for our customer base in the years to come."
"We see this as a win-win for Orlandi, our customers and the beauty industry as a whole," said Sven Dobler, CEO of Orlandi.
He added, "This transaction corrects a significant overcapacity in the entire industry supply chain for scented strips."
"This acquisition underscores Arcade Beauty's dedication to support our brand partners," said Carl Allain, president and CEO of Arcade Beauty. "Arcade Beauty looks forward to the opportunities that lie ahead and is committed to delivering exceptional value to all stakeholders."