According to a report in streetinsider.com, Phoenix Color Corp., a wholly owned subsidiary of ALJ Regional Holdings Inc. (ALJ) has announced that they have entered into an asset purchase agreement to acquire the Color Optics packaging business from AKI, Inc., which does business under the Arcade Beauty name. The aggregate consideration for the acquisition is $7 million, subject to certain adjustments, and is subject to certain customary closing conditions.
 
In conjunction with the acquisition of Color Optics, Phoenix Color and ALJ said they expect to enter into an amendment to the financing agreement with Cerberus Business Finance, LLC, to increase borrowings by $10 million, and make certain adjustments to the covenants to reflect the consolidated business of ALJ following the closing.
 
Commenting on the transaction, Marc Reisch, executive chairman of Phoenix Color, stated, "We are very excited to be adding Color Optics to the Phoenix Color business. 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. To further support the acquisition, Phoenix Color will be investing approximately $5.0 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, multi-color book customers." Reisch added, "We are also very pleased to be entering into a long term supply agreement with Arcade Beauty."
 
Joe Cicci, president of Color Optics, commented, "We are delighted to be joining Phoenix Color. The combination of both companies' existing capabilities, along with the announced capital investments, will provide excellent opportunities for our customers."