Mystic Tan and Palm Beach Tan recently announced that the two have become independent companies. On Jan. 2. Mystic Tan announced it was an independent operating company, separate from its previous parent company, Palm Beach Tan, Inc. and merged with its partner Mystic Manufacturing, Ltd.
Since 1999, the companies have experienced tremendous growth, and recently began competing in several of the same markets. The separation has been in motion since mid-2005, and was finalized Dec. 31, 2005.
Previously, Mystic Tan booths and products have been manufactured and distributed to tanning salons throughout the world as a division of Palm Beach Tan. However, retail sales for Mystic Tan equipment have risen throughout the last two years, creating some competition among tanning salons, including Palm Beach Tan. To eliminate the concerns of Mystic salon partners it was in the best interest of Mystic Tan to operate independently.
“The decision to spin off Mystic Tan and merge it with Mystic Manufacturing into one company made sense from a business standpoint and is intended to provide Mystic Tan with the flexibility to continue its aggressive growth,” says Ben Hinterlong, Mystic Tan CEO. “2006 will be a big year for Mystic Tan and its salon partners. “It is important for our salon partners to recognize that we split the companies to eliminate any concern regarding competition and that our new relationship with PBT is a vendor to customer relationship. We have separate offices and no longer interface with PBT on a daily basis. There is no sharing of employee’s or information available to PBT regarding Mystic Tan customers.”
Continuing its fast-paced growth pattern, Mystic Tan will widen its product mix with both additional OEM and private labeled products in the coming year. In addition, the company plans to begin offering booths and products in vertical markets. Mystic Tan will continue its public relations strategy and has several exciting events planned for this year.
Mystic Tan has formed a different board of directors, management team and shareholder base completely independent of Palm Beach Tan.
