Ulta Beauty is new Space NK owner, purchase gives it instant scale in UK market
But there was speculation that it would have been higher than £300 million ($408 million), reflecting the success enjoyed by Space NK in recent periods.
The retailer sells a wide range of higher-end labels through its 83 UK and Ireland stores, and online, and will continue to do so as a standalone subsidiary of Ulta. It will also continue to be led by its existing management team under Space NK CEO Andy Lightfoot.
For Ulta, it's not just an acquisition but an entry point into the strong UK beauty market.
'We are excited to enter the UK via the Space NK banner,' said Kecia Steelman, president and CEO of the American firm. '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.'
Steelman also said 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 team to support their continued growth and success'.
Manzanita's CEO and founder Bill Fisher added that Space NK has been 'an important part' of its business for the past 23 years. 'The acquisition of Space NK from [founder] 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.'
Meanwhile Lightfoot highlighted Ulta's powerful position in the US market and said the UK firm will 'benefit from its scale, brand relationships and resources to further fuel our mission to serve beauty obsessed consumers through expertise and innovation'.
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