2008-09 Fact Book: The State Of The Industry Report

In August 2006, industry pioneers Trevor and Edna Gray announced they had sold their interests in Sunshine Holdings, Inc., the umbrella company of ETS, Australian Gold and Helios, to its current sales executives and local area investor MH Equity. The new company, New Sunshine LLC, is led by CEO and President Steve Hilbert and other board members. Dayto- day operations of Australian Gold and ETS remain in the hands of the industry veterans who were instrumental in building the powerful brands.

Just four months later, on Dec. 18, 2006, Indianapolis-based Australian Gold announced the acquisition of Los Angeles-based California Tan. This acquisition effectively joined the No. 1 and No. 2 indoor tanning lotion manufacturers into one powerhouse.

On the franchising side, Palm Beach Tan, Inc. announced its Jan. 5, 2007 acquisition of the Desert Sun Tanning Salons franchise. Desert Sun became a wholly-owned subsidiary of Palm Beach Tan and continues to operate under the Desert Sun brand. Additionally, Entrepreneur Magazine’s 28th Annual Franchise 500® issue ranked four indoor tanning franchises on its list: Hollywood Tans, Palm Beach Tan, Planet Beach Franchising Corp. and The Tan Company, respectively.

In the spring of 2007, U.K.-based light therapy manufacturer Photo Therapeutics, Inc., manufacturer of Omnilux Light Therapy, acquired Carlsbad, Calif.-based Lumiére Light Thérapie and Tanology.

In June 2007, Suntan Supply of Avon, Ohio acquired St. Cloud, Minn.-based T.W. Tan. Suntan Supply operates from its new 38,050-square-foot facility in Avon and T.W. Tan continues to operate from St. Cloud under the management of Jamie Carlson.

In July 2007, Four Seasons Sales & Service, Inc. of Paris, Tenn. announced the acquisition of National Tanning Supply in Springfield, Ill. National Tanning Supply continues to operate from Springfield under the direction and management of cofounders Dave and Annette Orlikowski.

Also in July, Klafsun, Inc. of Gastonia, N.C. purchased the assets of Sontegra, including the inventory of beds as parts and the registered trademark, Sontegra®.

In August 2007, PC Marketing, based in Ridgefield, N.J., acquired Chicago-based Tanning Supply Outlet, which expands PC Marketing’s national market.

In September 2007, Heartland Tanning in Lee’s Summit, Mo. acquired Fort Worth, Texas-based Salon Support, Inc. With the acquisition, Heartland added its fifth location overall and its fourth shipping location in the country.

Also in September 2007, Indianapolis-based Australian Gold announced the acquisition of Tempe, Ariz.-based Designer Skin and all its brands.

A number of companies that were instrumental in the early growth of the U.S. tanning market also exited the industry this season, including equipment manufacturers SonnenBräune and Puretan. The industry also saw many small- to mid-size distributors fall by the wayside as well as an overall reduction in lotion suppliers.

The face of the U.S. tanning industry has changed dramatically in the past few years, but with change comes a host of new leaders that are ready to take the industry to the next level.