US giant Ulta Beauty acquires Space NK

Ulta Beauty is acquiring Space NK from its current owner, Manzanita Capital.

The exact amount Ulta has paid remains unclear as of Thursday morning, though one source indicated the deal was likely to exceed £300 million.

Kecia Steelman, President and CEO of Ulta Beauty, 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."

It comes after Manzanita Capital launched a formal sale process for the British beauty chain in May.

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

Andy Lightfoot, CEO at Space NK, said: "We have long respected Ulta Beauty as the leading specialty beauty retailer in the US.

"We are energised and excited by the opportunity to join Ulta Beauty and benefit from its scale, brand relationships, and resources to further fuel our mission to serve beauty-obsessed consumers through expertise and innovation."

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

In recent years, the retailer has continued to invest in its stores, operations, technology and customer acquisition, while also onboarding an abundance of new and trending brands, from Kosas and Emma Lewisham to Laneige and Then I Met You.

It also recently confirmed the opening of a new flagship at London's Oxford Circus next month, introducing a new beauty experience concept to meet the wants and needs of its customers.

The flagship will feature a selection of new brands, exclusive product launches and familiar favourites, allowing customers to explore the "very best of beauty" following its opening on 8 August.