Ulta Beauty has acquired Space NK from owner Manzanita Capital, the US beauty giant confirmed today (10 July).

The financial terms of the deal were not disclosed, but sources have previously claimed the company’s value is in excess of £300m.

Ulta Beauty said Space NK will operate as a standalone subsidiary and be led by its existing management team, including its chief executive officer Andy Lightfoot.

The deal was funded with cash on hand and capacity under Ulta Beauty’s existing credit facility.

Ulta Beauty chief executive and president Kecia Steelman said: “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.

“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,” Steelman added.

Manzanita Capital launched a formal sale process of Space NK in May, more than a year after it appointed bankers to handle the sale.

The private equity firm previously explored a sale of the beauty retailer in 2018 when it hired Goldman Sachs to conduct a strategic review. However, it opted not to proceed with a deal.

Manzanita Capital founder and chief executive Bill Fisher said: “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.”

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

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