Arcade Beauty, a leading global provider of end-to-end beauty solutions, is excited to announce the successful acquisition of ORLANDI's TruEssence® business.

The transaction includes the acquisition of laboratory and slurry production equipment and the related intellectual property of TruEssence. As a result, on January 1, 2024, ORLANDI will be exiting the category of scented strips and its TruEssence® product line while maintaining its other sampling product offerings.

Arcade Beauty pioneered ScentStrip in 1979, which still remains the most cost-effective way to deliver a quality rendition of fine fragrance. Scented strips have a multifaceted application strategy, where brands can showcase fine fragrance in magazines, catalog inserts, direct mail and at retail.

"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.

Simultaneously, Arcade Beauty has entered into a strategic Lease Agreement for the facility located at 7026 Discovery Drive, Chattanooga, TN 37416 ("Discovery Drive") 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.