The NYC-headquartered manufacturer specialising in sampling, small-size and turn key beauty solutions has acquired the TruEssence scented strips product line from Orlandi.
The transaction includes the acquisition of the laboratory and production equipment and the related intellectual property of TruEssence. As a result, on January 1, 2024, Orlandi will no longer manufacture or sell TruEssence and will be exiting the category of scented strips while maintaining its other sampling product offerings.
Arcade Beauty already manufactures scented strips under the trademark ScentStrip, a business the company pioneered in 1979. According to the company, the technology 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,” claimed Arcade.
"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 divesture as a win-win for Orlandi, our customers and the beauty industry as a whole," said 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 will secure the long-term availability of this sampling technology for our common customers in the future."
Simultaneously, Arcade Beauty has entered into a strategic Lease Agreement for the facility located at 7026 Discovery Drive, Chattanooga, Tennessee, to consolidate and relocate its existing laboratory and production processes for 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," concluded Carl Allain, President and CEO of Arcade Beauty.