Ulta Beauty Makes UK Debut through Space NK Acquisition, Prepares Mexican Market Entry

Ulta Beauty continues to chart its international roadmap with a firm step. The U.S. company, leader in cosmetics distribution in its local market, has acquired the British chain Space NK as part of its global expansion strategy. The transaction, financed with its own resources and available credit lines, allows the company to incorporate the British market into its operations after years of focusing exclusively on the United States.

Space NK, which specializes in niche and high-end brands, has 83 stores in the UK and Ireland and closed 2024 with a turnover of 196.5 million pounds. Founded in 1993 in Covent Garden, the chain will be integrated into Ulta as an independent subsidiary and will continue to be managed by its current team, led by Andy Lightfoot. The company will maintain its operating model, focused on selective brand curation and customer loyalty, two of its core strengths.

The acquisition comes in parallel to Ulta’s expansion into new markets, with the company planning to enter Mexico in the second half of 2025 through a joint venture with Grupo Axo, operator of brands such as Victoria’s Secret, Guess and Bath & Body Works. Both companies are already working on the opening of the first ten stores in the country, with a rapid rollout as an initial target.

In addition, Ulta’s international expansion includes its entry into the Middle East through a licensing agreement with Alshaya Group, with openings planned in Dubai and Kuwait. The U.S. group had been in talks with the Kuwaiti holding company for some time and believes it is the right partner to introduce the brand in the region.

Ulta Beauty will land in Mexico through Grupo Axo

In parallel to these negotiations, Space NK had already initiated a partial divestiture process. In June 2024, its North American wholesale division was acquired by PCA Companies, including some 600 points of sale in retailers such as Bloomingdale’s, Nordstrom, Hudson’s Bay and Walmart.

With this transaction, Ulta enters a new growth cycle outside the United States, where it already has more than 1,300 stores. The company believes that its scale, network of partner brands and investment capabilities will enable it to accelerate Space NK’s growth globally, leveraging synergies between the two groups.

British fund Manzanita Capital, which had acquired Space NK 23 years ago, had been looking for months for a buyer for the ensign, having ruled out a divestment in 2018. With the entry of Ulta, the group closes its stage at the helm of the British retailer.

The transaction comes in a context of a reactivation of the M&A market in the beauty sector, after a period of containment. In recent months, there have been significant moves such as the purchase of Medik8 and Color Wow by L’Oréal and the acquisition of Rhode by E.l.f. Beauty.