Ulta Beauty enters U.K. with acquisition of British beauty retailer Space NK
Ulta Beauty is accelerating its international growth.
The U.S. beauty powerhouse said it has acquired British beauty retailer Space NK Limited from London investment firm Manzanita Capital. Financial terms of the deal were not disclosed except that the purchase was funded with cash on hand and capacity under Ulta’s existing credit facility.
Space NK, which was founded in 1993 with a store in London’s Covent Garden featuring hard-to-find beauty items from emerging international brands, operates 83 stores in the U.K. and Ireland along with its online platform. The company will operate as a standalone subsidiary 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 U.K. market with a successful and growing brand,” said president and CEO Kecia Steelman, who took the reins at Ulta in January. ”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. We look forward to working with the Space NK team to support their continued growth and success”
Space NK will continue to be led by its existing management team, including CEO Andy Lightfoot.
“We have long respected Ulta Beauty as the leading specialty beauty retailer in the U.S.,” said Lightfoot. “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.”
Ulta’s acquisition of SpaceNK comes as the company is preparing to make its debut later this year in Mexico through a joint venture with global brands operator Axo. It also is entering the Middle East through a franchise agreement with Alshaya Group, one of the region’s largest retail operators.
The SpaceNK 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, the company said.
Advisors
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.
Ulta Beauty operates 1,451 retail stores across 50 states and distributes products through its website.
