Ulta Beauty Buys Space NK

Ulta Beauty, Inc. acquired Space NK Limited, a leading British beauty retailer. A purchase price was not disclosed. Space NK is owned by Manzanita Capital, a beauty sector specialist investor with a long-term investment horizon.

Space NK operates 83 stores in the UK and Ireland, and online. It will operate as a standalone subsidiary of Ulta Beauty. It will continue to be led by its existing management team, including Space NK Chief Executive Officer Andy Lightfoot.

International Expansion

“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. 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, noted 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,” he said. “I have every confidence that Ulta Beauty and this terrific management team will take Space NK to new heights.”

The Benefits of Scale

“We have long respected Ulta Beauty as the leading specialty beauty retailer in the US. We are energized and excited by the opportunity to join Ulta Beauty and benefit from its scale, brand relationships and resources to 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 the execution of its capital allocation priorities, including its share repurchase program.

Goldman Sachs is serving as the exclusive financial advisor to Ulta Beauty, and Latham & Watkins is serving as legal counsel. Raymond James is serving as the exclusive financial advisor to Space NK, and Bryan Cave Leighton Paisner LLP is serving as legal counsel to Manzanita Capital and Space NK.