Bolingbrook, Ill. — Ulta Beauty, Inc. 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 CEO Andy Lightfoot.
“We are excited to enter the UK market via the Space NK banner,” says 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.”
Bill Fisher, CEO and founder of Manzanita Capital, says: “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.”
Adds Lightfoot: “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.”
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.
Founded in 1990, Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. Today, Ulta Beauty operates 1,451 retail stores across 50 states. For more information, visit www.ulta.com.
Space NK first opened in 1993 as a lifestyle retailer in Covent Garden, London. Today, Space NK is a unique destination for beauty discovery, operating 83 locations across the UK and Ireland along with its online platform. For more information, visit www.spacenk.com.
Manzanita Capital is a specialist investor focused on developing luxury and premium beauty companies into enduring global brands. Some current and prior investments include Diptyque, D S & Durga and Byredo.
SOURCE: Ulta Beauty