Space NK’s Owner Enlists Bankers to Sell Popular Beauty Chain on High Street

The owner of Space NK, a well-known beauty retailer in the UK, has selected bankers to manage the potential sale of the high street chain. Manzanita Capital, a private investment firm, has reportedly engaged the services of Raymond James to lead an auction later this year. With over 20 years of ownership, Manzanita has yet to make a final decision on the timing of the sale, which is expected to garner a price tag of over £300m.

According to sources familiar with the matter, the financial performance of Space NK could value the company between £300m and £400m. The sale of one of the UK’s leading beauty retailers has generated significant interest, with potential buyers eagerly awaiting the opportunity to acquire a stake in the company.

Manzanita, which also owns other luxury brands such as French perfume house Diptyque and Austrian skincare brand Susanna Kaufmann, is reportedly considering selling a minority or controlling interest in Space NK. Founded in 1993 by Nicky Kinnaird, the chain currently operates 76 stores and employs over 1,000 individuals. It specializes in high-end skincare and cosmetics products and has shown resilience in its post-Covid trading performance.

In its most recent financial statement filed at Companies House, Space NK reported a significant increase in earnings before interest, tax, depreciation, and amortization, reaching nearly £6m for the year ended March 25, 2023. This impressive performance has undoubtedly contributed to the interest in the potential sale of the company.

This is not the first time Manzanita has explored a sale of Space NK. In 2018, the firm hired Goldman Sachs to conduct a strategic review but ultimately decided not to proceed with a deal. Both Manzanita and Raymond James have declined to comment on the matter on Tuesday morning.