Ulta Beauty Announces Acquisition of Leading British Beauty Retailer Space NK from Manzanita Capital
Space NK is a curator of some of the world鈥檚 most innovative beauty brands and a go-to destination for beauty discovery in its 83 stores in the
鈥淲e are excited to enter the
鈥淪pace NK鈥檚 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 Space NK team to support their continued growth and success,鈥� continued Steelman.
Bill Fisher, CEO and founder of Manzanita Capital, commented 鈥淪pace NK has been an important part of Manzanita Capital for the past 23 years. The acquisition of Space NK from Nicky Kinnaird was a key influence in developing Manzanita鈥檚 unique expertise in selecting and nurturing luxury and niche premium beauty and perfume brands.鈥�
鈥淚 have every confidence that Ulta Beauty and this terrific management team will take Space NK to new heights,鈥� continued Fisher.
鈥淲e have long respected Ulta Beauty as the leading specialty beauty retailer in the
The purchase of Space NK was funded with cash on hand and capacity under Ulta Beauty鈥檚 existing credit facility. The acquisition is not expected to be material to Ulta Beauty鈥檚 fiscal 2025 financial results and will not impact execution of its capital allocation priorities, including its share repurchase program.
Goldman Sachs is serving as exclusive financial advisor to Ulta Beauty, and Latham & Watkins is serving as legal counsel. Raymond James is serving as exclusive financial advisor to Space NK, and Bryan Cave Leighton Paisner LLP is serving as legal counsel to Manzanita Capital and Space NK.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty
About Space NK
Space NK first opened in 1993 as a lifestyle retailer in Covent Garden,
About Manzanita Capital
Manzanita Capital is a specialist investor focused on developing luxury and premium beauty companies into enduring global brands. Unconstrained by strict investment horizons, its long-term perspective is backed by patient family capital. Some current and prior investments include Diptyque, D S & Durga, and Byredo.
Forward鈥慙ooking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect Ulta Beauty鈥檚 current views with respect to, among other things, future events and financial performance. These statements can be identified by the use of forward-looking words such as 鈥渨ill鈥�, 鈥渙utlook,鈥� 鈥渂elieves,鈥� 鈥渆xpects,鈥� 鈥減lans,鈥� 鈥渆stimates,鈥� 鈥渢argets,鈥� 鈥渟trategies鈥� or other comparable words or the negative version of these words. The forward-looking statements in this press release include, among other things, statements regarding the anticipated benefits of the acquisition of Space NK and the future performance of the combined businesses. Any forward-looking statements contained in this press release are based upon Ulta Beauty鈥檚 historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Ulta Beauty or any other person that the future plans, estimates, targets, strategies or expectations contemplated by it will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation:
- the possibility that Ulta Beauty will not realize the anticipated benefits of the acquisition of Space NK for any reason, including due to challenges with integration or achieving anticipated acquisition synergies;
- macroeconomic conditions, including inflation and elevated interest rates, as well as prior labor, transportation, and shipping cost pressures, have had, and may continue to have, a negative impact on Ulta Beauty鈥檚 business, financial condition, profitability, and cash flows (including future uncertain impacts, especially when combined with increased tariffs);
- changes in the overall level of consumer spending and volatility in the economy, including as a result of macroeconomic conditions, tariffs, and geopolitical events;
- Ulta Beauty鈥檚 ability to sustain its growth plans and successfully implement its long-range strategic and financial plan;
- the ability to execute Ulta Beauty鈥檚 operational excellence priorities, including continuous improvement and supply chain optimization;
- Ulta Beauty鈥檚 ability to gauge beauty trends and react to changing consumer preferences in a timely manner;
- the possibility that Ulta Beauty may be unable to compete effectively in Ulta Beauty鈥檚 highly competitive markets;
- the possibility of significant interruptions in the operations of Ulta Beauty鈥檚 distribution centers, fast fulfillment center, and market fulfillment centers;
- the possibility that cybersecurity or information security breaches and other disruptions could compromise Ulta Beauty鈥檚 information or result in the unauthorized disclosure of confidential information;
- the possibility of material disruptions to Ulta Beauty鈥檚 information systems, including its Ulta.com website and mobile applications;
- the failure to maintain satisfactory compliance with applicable privacy and data protection laws and regulations;
- changes in the good relationships Ulta Beauty has with its brand partners, its ability to continue to obtain sufficient merchandise from its brand partners, and/or its ability to continue to offer permanent or temporary exclusive products of its brand partners;
- Ulta Beauty鈥檚 ability to effectively manage its inventory and protect against inventory shrink;
- changes in the wholesale cost of Ulta Beauty鈥檚 products and/or interruptions at its brand partners鈥� or third-party vendors鈥� operations;
- epidemics, pandemics or natural disasters, which could negatively impact sales;
- the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues;
- Ulta Beauty鈥檚 ability to attract and retain key executive personnel;
- the impact of climate change on Ulta Beauty鈥檚 business operations and/or supply chain;
- Ulta Beauty鈥檚 ability to successfully execute its common stock repurchase program or implement future common stock repurchase programs;
- a decline in operating results which could lead to asset impairment and store closure charges; and
- other risk factors detailed in the company鈥檚 public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10鈥慘 for the fiscal year ended February 1, 2025, as such may be amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q.
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Source: Ulta Beauty
