Ulta Beauty Buys British Retailer Space NK In Bid To Expand Prestige Portfolio Globally

Ulta Beauty (ULTA) announced on Thursday that it has acquired British beauty retailer Space NK from Manzanita Capital, a specialist investor in the beauty sector, as part of the U.S. cosmetics retailer’s international expansion plans.

Ulta Beauty shares rose 1.5% during midday trading. Retail sentiment around the stock improved to ‘bullish,’ compared to the ‘neutral’ territory a week ago, according to data from Stocktwits.

Space NK first opened in 1993 and operates in 83 locations across the UK and Ireland, along with its online platform.

The financial terms of the deal were not disclosed. Ulta said Space NK will operate as a standalone subsidiary and will continue to be led by its existing management team, including its Chief Executive Officer, Andy Lightfoot.

The move comes at a time when beauty growth in the U.S. market has stalled, and spending on products such as high-end make-up and cosmetics has taken a hit from cautious consumers who are scaling back purchases due to U.S. President Donald Trump’s tariff-led price increases.

“International expansion is an integral part of our Ulta Beauty Unleashed plan … 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,” Ulta CEO Kecia Steelman said.

Goldman Sachs is serving as the financial advisor to Ulta, and Latham & Watkins is serving as legal counsel, Ulta said.

The company added that Raymond James is serving as the financial advisor to Space NK, and Bryan Cave Leighton Paisner LLP is serving as the legal counsel to Manzanita Capital and Space NK.

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