Ulta Beauty Inc. announced it would acquire Space NK Limited, a British beauty retailer.
Space NK’s previous owner, Manzanita Capital, and Ulta did not disclose financial terms of the acquisition in a July 10 press release. However, Ulta noted that Space NK will operate as a standalone subsidiary. In addition, Space NK will maintain its existing management team, including CEO Andy Lightfoot. Space NK operates 83 physical stores in the United Kingdom and Ireland, as well as its ecommerce business.
“We are excited to enter the UK market via the Space NK banner,” said Kecia Steelman, president and CEO of Ulta Beauty, in a statement announcing the acquisition. “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. 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 displays a promotion on its ecommerce website on July 10, coinciding with Amazon’s four-day Prime Day 2025 event. | Image source: Ulta.com
Ulta ranks No. 35 in the Top 2000 Database. The database ranks North America’s largest online retailers by their annual global ecommerce sales. Prior to its Space NK acquisition, Ulta was the fourth-largest Health & Beauty retailer in the Top 2000.
What Ulta shared about the Space NK acquisition
Ulta funded the transaction with cash on hand and capacity under its existing credit facility, it said. Additionally, Ulta does not expect the acquisition to “be material to Ulta Beauty’s fiscal 2025 financial results.” It said it “will not impact execution of its capital allocation priorities, including its share repurchase program.”
“Space NK’s 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,” Steelman said in the statement. “We look forward to working with the Space NK team to support their continued growth and success.”
Bill Fisher, the CEO and founder of Manzanita Capital, called Space NK an important part of its business for the past 23 years.
“The acquisition of Space NK from Nicky Kinnaird was a key influence in developing Manzanita’s unique expertise in selecting and nurturing luxury and niche premium beauty and perfume brands,” he said in the statement.
Leadership change at Ulta
Two weeks before announcing the acquisition of Space NK, Ulta named Chris Lialios its interim chief financial officer. Lialios succeeds Paula Oyibo, who had left Ulta.
Chris Lialios, interim CFO, Ulta
Ulta said in announcing the transition that it has begun an external search for a permanent successor with assistance from an executive search firm. Prior to being named interim CFO, Lialios served as Ulta’s senior vice president and controller since 2018. He was responsible for the company’s financial reporting, internal controls and accounting policy, the retailer said. Lialios has been with Ulta since 1999. He is a certified public accountant who holds a bachelor’s degree in accounting from the University of Illinois Chicago and an MBA from Webster University.
“We’re confident that his deep familiarity with our business coupled with his financial expertise and leadership style will ensure a smooth transition as we continue to execute our Ulta Beauty Unleashed plan,” Steelman said in a June 25 statement.
In its fiscal Q1 2025, Ulta net sales increased 4.5% year over year, to $2.85 billion from $2.73 billion. Comparable sales, which include those from stores open at least 14 months and its ecommerce business, increased 2.9% in Q1. Ulta credited a 2.3% increase in average order value and a 0.6% increase in transactions for the Q1 sales growth.
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