Ulta Beauty to Acquire UK’s Space NK in a over £300M Deal
Ulta Beauty is making a bold move. The U.S. beauty giant is set to buy Space NK, a well-known British beauty chain, in a deal worth over £300 million. This is more than just another business deal; it marks Ulta’s first major step into the UK market.
Ulta has grown to become one of the top beauty retailers in the U.S., now operating more than 1,300 stores along with a strong digital presence. Now, it’s crossing borders. By bringing Space NK under its wing, Ulta will instantly gain a network of premium beauty stores across the UK and Ireland. Space NK, founded in the early ’90s, is known for high-end skincare and luxury beauty brands. It’s a favorite among UK shoppers who want quality and style.
Why does this matter? Because this deal could change how we shop for beauty products, both online and in-store. It also shows how American companies are pushing into European markets to grow even bigger. For Ulta, it’s not just about buying a brand, it’s about building a global beauty empire.
Let’s break down what this deal means, how it works, and what’s next.
About Ulta Beauty
Founded in 1990 in Illinois, Ulta blends mass-market and high-end brands under one roof. It reported over $11 billion in revenue during 2023 and operates nearly 1,500 U.S. stores. Ulta’s product range is becoming more distinct, widening the gap with rivals like Sephora, Amazon, and Target.
About Space NK
Space NK emerged from a curated, gallery-style retail model. It stayed classy yet updated its look. Its Oxford Street flagship, over 4,600 sq ft, opens this August and aims to draw younger shoppers with immersive design. Space NK’s turnover jumped from £112 million (2021) to £197 million (2024), thanks to targeted expansion and a strong loyalty base.
Deal Details
Ulta has registered a UK acquisition arm, showing intent to close the deal soon. Manzanita Capital, Space NK’s owner since 2002, hired Raymond James in April 2024 to run an auction. Initial bids may range between £ £300 and £ 400 million. Final terms are still confidential, and we await official statements.
Strategic Goals
We see clear reasons behind the move:
- UK market entry: Ulta gains physical and online presence in a major market.
- Luxury reach: Space NK’s premium range adds upscale depth to Ulta’s mix.
- Omnichannel strengths: Both companies have solid customer loyalty programs and well-developed online platforms.
- Global positioning: The move competes with brands like Sephora in Europe.
Operational and Market Notes
Ulta will need to navigate UK retail regulations and gain approval from the Competition and Markets Authority (CMA). Integration will involve aligning systems, customer service, and brand identity. The UK retail climate remains cautious, with inflation squeezing budgets.
Financial and Market Impact
The deal could amount to about 3 percent of Ulta’s market value. The company may fund it using cash, credit, or debt. Analysts expect the move to boost international revenues in late 2025 or early 2026. Ulta’s shares have shown resilience—up nearly 9% year-to-date—despite rising competition and a neutral consumer climate.
Outlook
We expect an official announcement soon. Once confirmed, Ulta and Space NK will begin integration, aligning systems, retaining key staff, and announcing new store strategies. They’ll await CMA clearance before unveiling full plans.
FAQS:
Ulta Beauty is famous for selling makeup, skincare, haircare, and perfumes. It offers both luxury and drugstore brands all in one place, with salon services too.
No, Ulta Beauty does not have stores in the UK yet. But it plans to enter the UK market by buying the beauty store chain Space NK.
Ulta Beauty mainly targets teens, young adults, and women who love beauty products. It also attracts people looking for both high-end and affordable beauty options.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.