Indianapolis-based Australian Gold buys biggest rival

Indianapolis-based Australian Gold Inc., the nation's biggest maker of indoor tanning lotions, has acquired its largest rival, Los Angeles-based California Tan. Terms were not disclosed.

Australian Gold is part of Sunshine Holdings, a holding company for tanning-related businesses acquired in late summer by Stephen Hilbert's private equity firm, MH Equity.

Australian Gold lotions have a market share topping 40 percent. The acquisition gives the combined company a market share topping 60 percent, said John Keiffner, Australian Gold's vice president of marketing and sales.

Australian Gold has more than 100 employees, while California Tan has about 60. The two will continue to operate as separate businesses, Keiffner said.

"We had an opportunity to grow our market share. We were able to purchase the No. 2 brand. We are excited about the opportunity for both brands," he said.

The purchase is the latest in a string of high-profile deals MH has negotiated since Hilbert formed it in 2005.

The firm-backed by up to $400 million from John Menard, the billionaire founder of the home-improvement chain-in December 2005 pumped $15 million into New Jersey-based Orbcomm Inc., which operates a satellite-based system that allows companies to track trucks, utility meters and other assets.

About eight months later, MH purchased Sunshine from founders Trevor Gray and his wife, Edna. In addition to Australian Gold, the purchase included ETS Inc., a maker of tanning beds; and Helios, which makes tanning salon software.