U.S. retailer Ulta Beauty announced Thursday that it has acquired U.K. speciality beauty retailer Space NK Limited from private equity firm Manzanita Capital. The deal includes a mix of cash and credit, but the exact terms have not yet been disclosed.
“We are excited to enter the U.K. market via the Space NK banner,” Ulta Beauty CEO and president Kecia Steelman said in a statement. “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 U.K. market with a successful and growing brand.”
Since taking the reins as CEO in January, Steelman has been rebounding Ulta Beauty’s Q4 2024 1.9% net sales decrease. During January’s earnings call, she unveiled her “Ulta Beauty Unleashed” comeback plan. “First, drive core business growth. Second, scale new accretive businesses. And third, realign our foundation for the future,” she said during the call.
Net sales improved in May, up 4.5% to reach $2.8 billion for the quarter. During Ulta Beauty’s May earnings call, Steelman shared more details of her plan: “We are targeting our first store openings in Mexico City, Kuwait City and Dubai later this year,” Steelman said.
Ulta’s expansion to Mexico will mark its first international opening. The company has partnered with global brand operator Groupo Axo. Similarly, it will expand to the Middle East through a licensing agreement with brand franchise operator Alshaya Group.
“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,” Steelman said.
Space NK launched in 1993 with its first London boutique. It currently operates 83 locations across the U.K. and Ireland, and sells direct-to-consumer online. Its merchandise is heavy on prestige and luxury skin care, color cosmetics, hair care and fragrance.
In May, Space NK suspended its U.S. shipping as a response to President Trump’s global tariffs. An email sent to shoppers read, “We are making some changes to how we serve U.S. customers. As we adapt to the latest U.S. tariff regulations, we have decided to pause e-commerce orders and shipping to the U.S. to avoid additional or incorrect costs being applied to our customers’ orders. Thank you for understanding.” The pause is still in effect.
Manzanita Capital specializes in beauty brands. It purchased Space NK in 2002. Its roster includes D S & Durga, Diptyque, Malin+Goetz, Byredo, Eve Lom and others. Manzanita reportedly tried to sell Space NK in 2018 without success. It sold Space NK’s internal U.S. distribution business, called SpaceNK Wholesale+, to PCA Companies in June of 2024. SpaceNK Wholesale+ served retailers like Nordstrom and Bloomingdale’s.
Space NK will continue to be led by its existing team, including Space NK CEO Andy Lightfoot. He’s been with the company for nine years, six of them as CEO. Space NK will now operate as a subsidiary of Ulta Beauty, although it doesn’t appear that anything consumer-facing will change for the U.K. retailer.
Ulta Beauty operates around 1,451 retail stores across 50 states.
