Ulta Beauty Expands International Footprint with Acquisition of UK’s Space NK. Ulta Beauty, the leading US specialty beauty retailer, has acquired Space NK, a prominent British beauty retailer known for its curated luxury brands. This strategic move marks Ulta’s entry into the UK market and aligns with its broader international expansion plans. Space NK will continue operating independently under its existing management, supported by Ulta’s resources to fuel future growth.
Ulta Beauty Expands International Footprint – Strategic Move into the UK Market
Ulta Beauty, a dominant player in the US beauty retail sector, has announced the acquisition of Space NK Limited, a well-established British beauty retailer. Space NK, with 83 stores across the UK and Ireland and a strong online presence, is recognised for its curated selection of innovative and luxury beauty brands. This acquisition represents Ulta’s first direct entry into the UK market, forming a key part of its international expansion strategy outlined in the Ulta Beauty Unleashed plan. Kecia Steelman, Ulta’s President and CEO, described the acquisition as a “unique and strategically compelling opportunity” to tap into the growing UK beauty market. Alongside other initiatives in Mexico and the Middle East, this move aims to broaden Ulta’s global footprint and unlock long-term, profitable growth.
Space NK’s Position and Future under Ulta Beauty
Founded in 1993, Space NK has built a reputation as a destination for beauty discovery, specialising in luxury and niche premium products. The retailer’s success is attributed to its tailored product mix and expert curation, which resonates well with beauty enthusiasts seeking high-quality, innovative brands. Following the acquisition, Space NK will operate as a standalone subsidiary, maintaining its existing management team led by CEO Andy Lightfoot. This continuity ensures that Space NK’s distinct brand identity and customer experience remain intact while benefiting from Ulta’s scale, brand relationships, and resources. Andy Lightfoot expressed enthusiasm about joining Ulta Beauty, highlighting the potential to accelerate Space NK’s mission to serve beauty-obsessed consumers through expertise and innovation.
Financial and Operational Details
The acquisition was funded through Ulta Beauty’s cash reserves and existing credit facilities. Financial terms were not disclosed, but Ulta has indicated that the deal is not expected to significantly impact its fiscal 2025 financial results or capital allocation priorities, including its share repurchase programme. The transaction involved top-tier advisory firms, with Goldman Sachs and Latham & Watkins advising Ulta Beauty, and Raymond James and Bryan Cave Leighton Paisner LLP advising Space NK and Manzanita Capital.
Manzanita Capital’s Role and Legacy
Manzanita Capital, a specialist investor in luxury and premium beauty brands, has owned Space NK for 23 years. The firm’s long-term investment approach has been instrumental in developing Space NK into a distinctive beauty retailer. Bill Fisher, CEO and founder of Manzanita Capital, expressed confidence in Ulta Beauty’s ability to elevate Space NK to new heights, acknowledging the retailer’s importance within Manzanita’s portfolio.
Deal underscores the growing importance of curated, luxury beauty experiences
The deal underscores the growing importance of curated, luxury beauty experiences and the value of combining local market expertise with global retail scale. It also highlights the increasing trend of cross-border acquisitions as beauty retailers seek growth beyond saturated domestic markets. Ulta Beauty’s acquisition of Space NK marks a significant milestone in the company’s international growth ambitions and offers new opportunities for collaboration and innovation within the beauty retail industry. Maintaining Space NK’s unique brand identity while leveraging Ulta’s resources presents a promising path for both companies and their partners in the evolving global beauty market.
[Text: epcnews/Logo: Ulta Beauty/Space NK]
