Palm Beach Tan, Inc. Becomes Nation's Largest Tanning Salon Chain

Palm Beach Tan, Inc. Becomes Nation's Largest Tanning Salon Chain

Tanning Salon Chain Continues Strategic Growth Initiatives with Strategic Acquisition

November 20, 2008 // // Dallas, Texas – Palm Beach Tan, Dallas-based leader in the indoor tanning salon industry, today announced the acquisition of Planet Tan, Inc., 16-store indoor tanning salon chain also based in Dallas. The deal was financed by Chatham Capital.

"We are pleased to be adding one of the most progressive tanning salon brands in the industry to the Palm Beach Tan family," said Diane Lucas, president and COO of Palm Beach Tan. "We believe that the combination of Planet Tan and Palm Beach Tan will result in exciting innovations and programs for our members."

With the acquisition of Planet Tan, the Palm Beach Tan family of brands becomes the largest tanning salon chain in the nation by revenue. Palm Beach Tan operates 90 corporate owned locations in Dallas/Ft. Worth, Atlanta, Washington DC, and Las Vegas along with 171 franchised locations in more than 25 markets under the Palm Beach Tan brand name and as Desert Sun Tanning Salons in the Pacific Northwest and California.

"As the industry consolidates, Palm Beach Tan will continue to grow through internal salon expansion, franchise growth, and by acquiring the best regional chains in the nation," said Lucas. "There is a great deal of talent in our industry. Every time we are able to add chains of the quality of Planet Tan, our brand and our members benefit."

During the next 12 months, Palm Beach Tan will operate Planet Tan as an independent brand, incorporating best practices of both concepts in an effort to continually improve the operating model of the company. In addition, Palm Beach Tan will add several Planet Tan key personnel to its management team to maintain the continuity of the Planet Tan brand.

"With consolidation across the tanning industry, it was only natural for Planet Tan to join forces with the industry leader, Palm Beach Tan, and take advantage of its strategic leadership team, purchasing power, and state-of-the-art operating systems," said Tony Hartl, founder of Planet Tan. "I am extremely pleased with the career growth and advancement opportunities that are now available to the Planet Tan team. I am fortunate to have built an organization full of talented people with passion for the business. Being part of Palm Beach Tan will take these deserving people to the next stage of their careers."

Hartl founded Planet Tan in 1995 after serving as vice president of sales and marketing for New Life Fitness, an independent, family-owned fitness center. He launched Planet Tan with a vision, "to provide an affordable luxury where everyone can feel better about themselves." They focused on excellence in costumer service with a fun, hip, clever sassy attitude. They quickly became known for their humorous and irreverent advertising that won awards and recognition nationally.

Planet Tan currently operates salons throughout the DFW Metroplex. With national expansion plans in place, Palm Beach Tan continues to seek qualified local and regional tanning salon operators to convert their existing salons into Palm Beach Tan franchise locations and new franchisees to open tanning salons throughout the United States.

About Palm Beach Tan

Founded in 1990, Palm Beach Tan, Inc. has become the leader in the indoor tanning industry, operating 271 locations, 90 corporate salons, and 181 franchised in 19 states. At the heart of Palm Beach Tan's franchise model is a superstore with 3000 square feet, 20-25 tanning beds, and 2-3 times the size of a typical tanning salon. The company offers convenience and a full range of services: three levels of tanning beds, UV Free Mystic Tanning, and premium skin care products. Palm Beach Tan offers its customers unlimited tanning without contracts or commitments. Palm Beach Tan was ranked the #1 Tanning Franchise in Entrepreneur Magazine's 29th Annual Franchise 500. For more information, please visit

About Planet Tan

Founded in 1995 by Tony Hartl, Planet Tan has been a leader in the indoor tanning industry. Planet Tan is the official tanning center for the Dallas Cowboys Cheerleaders, Dallas Mavericks Dancers, and the Dallas Stars Planet Tan Ice Girls. Planet Tan operates 16 tanning center locations in the Dallas/Fort Worth Metroplex. Planet Tan has been recognized on the SMU "Dallas 100" list as one of the fastest growing privately held businesses in Dallas, and was selected as the "Best Place to Work in DFW" by the Dallas Business Journal in 2006 and 2007. Looking Fit® magazine ranked Planet Tan in their "Top 250". The company has also been recognized by Inc. magazine 2007 & 2008 as one of the 5000 fastest growing companies in America and was featured on the cover Fortune Small Business magazine in 2008.

About Chatham Capital

Chatham Capital is an investment fund manager with approximately $700 million under management. Since 2001, Chatham has focused on investing in middle-market companies utilizing both senior and mezzanine structures. Chatham provides capital for organic growth, acquisitions, buyouts, divestitures, recapitalizations, and distressed or turnaround situations. Targeted industries include healthcare, manufacturing, distribution, business services, and retail.



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