US beauty retailer Ulta Beauty has completed the acquisition of British beauty retailer Space NK from Manzanita Capital, marking its entry into the UK market.
The financial details of the transaction were not made public.
The acquisition was financed using Ulta Beauty's available cash and its existing credit facility.
This deal is not anticipated to significantly affect Ulta Beauty's financial outcomes for fiscal 2025 and will not interfere with its ongoing capital allocation initiatives, such as its share repurchase programme.
Ulta Beauty CEO and president Kecia Steelman stated: “We are excited to enter the UK market via the Space NK banner.
“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 has 83 stores across the UK and Ireland as well as its online platform.
Post acquisition, Space NK will function as an independent subsidiary under Ulta Beauty and will continue under the leadership of its current management team, including CEO Andy Lightfoot.
Lightfoot stated: “We have long respected Ulta Beauty as the leading speciality beauty retailer in the US. We are energised 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.”
Goldman Sachs has been appointed as the exclusive financial advisor to Ulta Beauty for this transaction, with Latham & Watkins providing legal counsel.
Raymond James is acting as the exclusive financial advisor to Space NK, with Bryan Cave Leighton Paisner offering legal services to both Manzanita Capital and Space NK.
In October 2024, Ulta Beauty revealed plans to open 200 new stores by 2027.
