Phoenix Color, a wholly owned subsidiary of ALJ Regional Holdings, has entered into an asset purchase agreement to acquire the Color Optics packaging business from AKI, which does business under the Arcade Beauty name.

The aggregate consideration for the acquisition is $7 million, subject to certain adjustments and customary closing conditions. In connection with the acquisition of Color Optics, Phoenix Color and ALJ expect to enter into an amendment to the financing agreement with Cerberus Business Finance to increase borrowings by $10 million, and make certain adjustments to the covenants to reflect the consolidated business of ALJ following the closing.

Marc Reisch, executive chairman of Phoenix Color, commented, “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 million in new press, finishing and folding equipment including a 10-unit, perfecting press with coater that will support Color Optics and provide additional press capacity and capabilities.

Hagerstown, MD-based Phoenix Color is a full-service, full-color printer with over 30 years of print experience.