Posted May 19, 2019 07:29:22When the owners of the top-selling Tanning Salon in Austin, Texas, heard they were closing on a $300 million deal with an unnamed global brand, they were ready for a change.
“It just seemed like a natural fit for us,” said Chris Odom, one of the owners, in an interview with the Austin Business Journal.
The announcement was made Monday morning.
The Austin-based business, which has operated for nearly a decade in the city, announced it had acquired brand names like L’Oreal, Natura and Skinfood for $300.5 million in an all-cash deal.
The company will also acquire a stake in Nautica, which operates a salon in Austin’s west side.
It’s a major milestone for Austin-area tanning.
But while it’s the first time a major brand has been acquired by a local company, it’s not the first to make a splash in the Austin area.
In 2013, a new, high-end tanning company, Nautique, was founded in the West Austin district.
The new owner, L’Oréal, purchased a 19.5 percent stake in the company, but left the brand after a year, and it hasn’t reopened since.
The Austin-centered company that has been expanding quickly in the area also acquired the former Tarte Cosmetics.
That deal, also announced Monday, is for a 25 percent stake.
In all, there are over 700 Austin tanning facilities in operation.
But with the recent influx of luxury brands like L.L.
Bean, Kering, Chanel and more, there’s growing competition for top-rated salons, especially in a city that boasts one of America’s fastest-growing cities.
“Austin has a ton of brands in the marketplace, but there’s definitely a lot of competition from a very high level,” said Matt Gaudiano, a partner at the Austin law firm of Gaudiere, Odom and Associates.
The news of the Nautiques acquisition comes after a long-term partnership with an undisclosed international brand.
The deal was announced in February.
The name was not revealed, but the brand is said to be “the largest brand in the U.S. to have been acquired in less than two years.”
“The Austin area has always had an excellent brand landscape and we are excited to be part of it with the addition of the largest brand to operate in Austin for more than a decade,” said the owners.
“The Austin brand will bring the best in beauty to the community in a more innovative, modern and affordable fashion.
Austin is the place to do it, and this acquisition is another step in our journey.”
The new brand, L.V.L., is currently operating in the East Austin district, with an office in the South Austin district and plans to open in 2019 in a new location in the Midtown neighborhood.