Space NK owner Manzanita hires bankers to sell beauty retailer

Space NK owner Manzanita Capital has appointed bankers to handle a sale of the beauty retailer, which is expected to fetch more than £300 million.

The London-based private investment firm has hired Raymond James to oversee an auction later this year, according to Sky News.

Manzanita, which has owned Space NK for over 20 years, is said to have not yet made a firm decision on the timing of a sale.

One source said that based on Space NK's financial performance, it could be worth between £300 million and £400 million.

Manzanita, which also owns Diptyque, Malin + Goetz and Susanne Kaufmann, is also understood to be undecided on whether to sell a minority or controlling interest in the high street chain.

Established in 1991, Space NK - which is named after founder Nicky Kinnaird's initials - first opened its doors in Covent Garden in 1993.

Today, the premium beauty retailer operates 76 stores and employs more than 1,000 people. Earlier this year, it reported a 23% increase in turnover to £146 million for the year ending 25 March 2023, helped by continued investment in its store estate.

EBITDA reached £5.9 million, against £2.2 million in 2022. The business said the decision taken in the previous financial year to continue to invest in order to fuel growth was now "paying a return".

It added that directors at Space NK were "confident" this would further increase the company’s resilience and result in strong long-term growth to both turnover and EBITDA.

Manzanita previously explored a sale of Space NK in 2018, hiring Goldman Sachs to conduct a strategic review. It opted not to proceed with a deal.

Read TheIndustry.beauty's In History: Space NK, a timeline of a beauty retail trailblazer.