The transaction includes the acquisition of laboratory and slurry production equipment and the related intellectual property of TruEssence. As a result, Orlandi will no longer manufacture or sell TruEssence scented strips beginning January 2024.
Arcade Beauty pioneered ScentStrip in 1979, which still remains a cost-effective way to deliver a quality rendition of fragrance.
“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. Adding, “this transaction corrects a significant overcapacity in the entire industry supply chain for scented strips.”
“Divesting the TruEssence product line is a strategic re-alignment that will increase Orlandi’s focus and investments in our other sampling technologies and scented retail product lines,” said Orlandi’s Senior Vice President, Per Dobler.
Lease Agreement for Discovery Drive Facility
Simultaneously, Arcade Beauty has entered into a strategic Lease Agreement for the 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.
“Discovery Drive is a key asset in this acquisition, and its addition to Arcade Beauty’s portfolio enhances our ability to optimize operations for our customers while providing an excellent location for continued innovation and operational excellence,” said Carl Allain, President and CEO of Arcade Beauty. “The facility is ideally situated to support Arcade Beauty’s strategic objectives.”
“This acquisition underscores Arcade Beauty’s dedication to support our brand partners,” said Carl Allain. “Arcade Beauty looks forward to the opportunities that lie ahead and is committed to delivering exceptional value to all stakeholders.”
As part of the acquisition, Arcade Beauty and Orlandi will be working closely to ensure a smooth transition for employees, customers and suppliers.