The sampling and manufacturing company has secured the scented strips product business for an undisclosed sum.
The deal includes TruEssence’s intellectual property and the acquisition of laboratory and slurry production equipment, including the lease of its facility in Discovery Drive in Tennessee, US.
Arcade Beauty plans to consolidate and relocate its existing laboratory and slurry production processes to Discovery Drive to support its existing scented strips and label technologies.
This includes ScentStrip – where brands can showcase their fragrances in magazines, catalogue inserts, direct mail and at retail.
Arcade Beauty has 30 technologies in its product portfolio that support more than 400 international beauty brands.
"Discovery Drive is a key asset in this acquisition,” said Carl Allain, President and CEO of Arcade Beauty.
“Its addition to Arcade Beauty's portfolio enhances our ability to optimise operations for our customers.
“While providing an excellent location for continued innovation and operational excellence.
“The facility is ideally situated to support Arcade Beauty's strategic objectives."
Jorge Garcia, Arcade Beauty's Executive VP and CFO, said the acquisition creates “a necessary synergy that will protect this category for our customer base in the years to come”.
Orlandi will stop manufacturing and selling TruEssence from January 2024.
It said offloading the product line is part of its wider plans to invest in other sampling technologies and innovations.
"We see this divestiture as a win-win for Orlandi, our customers and the beauty industry as a whole,” commented Sven Dobler, CEO of Orlandi.
“Given the decline in magazine print volumes, the scented strip business had structural overcapacity.
“This consolidation will correct this trend and secure the long term availability of this sampling technology for our common customers in the future."
The companies will work closely to ensure a smooth transition for employees, customers and suppliers.
Orlandi is an international supplier of more than 25 different fragrance and cosmetic sampling solutions to the beauty and consumer products sector.
It also offers contract packaging, design and the manufacture of scented retail products.