Phoenix Color Corp. is buying beauty packaging business Color Optics from Arcade Beauty for $7 million.
“The printing and packaging solutions that Color Optics provides to the beauty, fragrance, cosmetic and consumer-packaged goods markets are a terrific business extension for Phoenix Color,” said Marc Reisch, Phoenix chairman. “Phoenix Color will be investing approximately $5 million in new press, finishing and folding equipment including a 10-unit, perfecting press with coater that will support Color Optics and also provide additional capacity and capabilities for our high-quality, multicolor book customers.”
Color Optics has handled printing and packaging for DDF, Lancôme, Elizabeth Arden, Ralph Lauren, Coach, Tommy Bahama, DKNY and other brands, according to its web site.
In connection with the acquisition, Phoenix Color said it anticipates adding $10 million to its financing agreement with Cerberus Business Finance LLC.
Phoenix, a subsidiary of ALJ Regional Holdings Inc., mainly manufactures book-related products. The business works with major publishing houses, including Harper Collins, RandomHouse, Penguin Putman and Simon & Shuster, according to a company spokeswoman.