Phoenix Color, a unit of ALJ Regional Holdings, has signed an agreement to acquire Color Optics packaging business from AKI, which operates under the Arcade Beauty name.
Color Optics is a provider of printing and packaging solutions for the beauty, fragrance, cosmetic and consumer-packaged goods markets.
The $7m deal is subject to certain adjustments and certain customary closing conditions.
As part of the Color Optics acquisition deal, US-based Phoenix Color and ALJ plan to enter into an amendment to the financing agreement with Cerberus Business Finance to increase borrowings by $10m.
Phoenix Color executive chairman Marc Reisch said: "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.
"We are also very pleased to be entering into a long term supply agreement with Arcade Beauty."
Phoenix Color is also planning to invest $5m in new press, finishing and folding equipment including a 10-unit, perfecting press with coater that will support Color Optics in order to provide additional capacity and capabilities for customers.
ALJ said that the Color Optics acquisition is a part of its efforts to make investments in its subsidiaries in a bid to expand product portfolio.
Color Optics president Joe Cicci said: "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."
Phoenix Color produces books, cut and stack labels, folding cartons and specialty commercial products.
