U.S. cosmetics chain retailer Ulta Beauty announced on Thursday, July 10, its entry into the British market with its purchase of high street chain Space NK from Manzanita Capital.
Already established in the United States, Canada, and Mexico, Ulta Beauty is making its first move in Europe with the acquisition of British retailer Space NK. The financial terms of the transaction have not been disclosed.
Alongside its recent agreement with the Alshaya Group to open its first stores in the Middle East by late 2025, the move underscores Ulta’s current focus on international expansion as part of its turnaround strategy.
Founded in 1993 as a lifestyle retailer in Covent Garden, London, Space NK now offers premium beauty and perfume brands in the UK and Ireland through a network of 83 cosmetics retail stores, as well as online.
Ulta Beauy said that Space NK would operate as a standalone subsidiary and would continue to be led by its existing management team, including Space NK chief executive officer Andy Lightfoot.
“We are excited to enter the UK market via the Space NK banner,” said Kecia Steelman, president and chief executive officer of Ulta Beauty. “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.”
Manzanita Capital has owned the high street beauty chain for the past 23 years, after acquiring it from its founder Nicky Kinnaird in 2002. The investment firm began to receive prospective bids from buyers in May.
Founded in 1990, Ulta Beauty is the largest specialty beauty retailer in the U.S. Today, the company operates 1,451 retail stores across 50 states and distributes products through its website.
Ulta Beauty funded the acquisition with cash on hand and capacity under its existing credit facility, the U.S. cosmetics company said.
Competition across the UK beauty retail market has been ramping up over the last years, with the re-entry of Sephora in 2023 and stores push to draw in new custom.
Last year, the UK health and beauty market continued to grow, hitting EUR 53.6 billion (about GBP 45.4bn) after three years of consistent growth, according to data analytics firm GlobalData. Within this, beauty was forecast to continue growth at 3% CAGR between 2023 and 2028, led by fragrance and cosmetics; sectors set to surge by 16% and 17%, respectively, during this same period. Mintel estimates matched – indicating UK beauty spending was up 3.8% in 2024, representing EUR 7.75 billion (GBP 6.45 billion) for the full year.
