LONDON: Ulta Beauty, the U.S. cosmetics giant with nearly 1,500 stores nationwide, has acquired high-end retailer Space NK from longtime owner Manzanita Capital.
The deal, which is expected to exceed £300 million, marks a major strategic expansion for Ulta as it registers an acquisition vehicle with Companies House. While the precise financial terms remain undisclosed, the transaction would bring Space NK’s portfolio of luxury skincare and cosmetics under Ulta’s expansive retail umbrella.
Manzanita Capital, which has owned Space NK for over two decades, enlisted Raymond James earlier this year to run an auction process. The firm also has investments in French perfume house Diptyque and Austrian skincare brand Susanne Kaufmann.
Founded in 1993 by Nicky Kinnaird, Space NK—named after her initials—operates dozens of stores and employs more than 1,000 people. The company previously explored a sale in 2018, retaining Goldman Sachs for a strategic review that ultimately did not result in a deal.
According to a statement, Ulta Beauty, Inc. (NASDAQ: ULTA) today announced that it has acquired Space NK Limited, a leading British beauty retailer, from Manzanita Capital, a beauty sector specialist investor with a long-term investment horizon. Financial terms of the transaction were not disclosed.
Space NK is a curator of some of the world’s most innovative beauty brands and a go-to destination for beauty discovery in its 83 stores in the UK and Ireland and online. Space NK will operate as a standalone subsidiary of Ulta Beauty and will continue to be led by its existing management team, including Space NK chief executive officer Andy Lightfoot.
“We are excited to enter the UK market via the Space NK banner,” said Kecia Steelman, president and chief executive officer of Ulta Beauty. “International expansion is an integral part of our Ulta Beauty Unleashed plan, and the acquisition of Space NK offers a unique and strategically compelling opportunity to enter the growing UK market with a successful and growing brand. Along with our initiatives in Mexico and the Middle East, we are creating a broader platform for Ulta Beauty to unlock long-term, profitable growth.”
“Space NK’s management team, with the backing of Manzanita Capital, has done an excellent job building a differentiated beauty experience that inspires consumers through tailored product mixes. We look forward to working with the Space NK team to support their continued growth and success,” continued Steelman.
Bill Fisher, CEO and founder of Manzanita Capital, commented “Space NK has been an important part of Manzanita Capital for the past 23 years. The acquisition of Space NK from Nicky Kinnaird was a key influence in developing Manzanita’s unique expertise in selecting and nurturing luxury and niche premium beauty and perfume brands.”
“I have every confidence that Ulta Beauty and this terrific management team will take Space NK to new heights,” continued Fisher.
“We have long respected Ulta Beauty as the leading specialty beauty retailer in the U.S. We are energized and excited by the opportunity to join Ulta Beauty and benefit from its scale, brand relationships and resources to further fuel our mission to serve beauty obsessed consumers through expertise and innovation,” said Andy Lightfoot.
The purchase of Space NK was funded with cash on hand and capacity under Ulta Beauty’s existing credit facility. The acquisition is not expected to be material to Ulta Beauty’s fiscal 2025 financial results and will not impact execution of its capital allocation priorities, including its share repurchase program.
Goldman Sachs is serving as exclusive financial advisor to Ulta Beauty, and Latham & Watkins is serving as legal counsel. Raymond James is serving as exclusive financial advisor to Space NK, and Bryan Cave Leighton Paisner LLP is serving as legal counsel to Manzanita Capital and Space NK.