Phoenix Color Purchases Color Optics

Phoenix Color Corp., a wholly owned subsidiary of ALJ Regional Holdings Inc. (ALJ), will acquire the Color Optics packaging business from AKI, Inc., which operates under the Arcade Beauty name. The aggregate consideration for the acquisition is $7 million, subject to certain adjustments.

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.