Space NK has sold its US wholesale arm to beauty platform PCA Companies as rumours swirl of a possible sale of the premium beauty chain, according to WWD reports.
The premium beauty retailer has announced the sale of its US wholesale arm to beauty platform PCA Companies, which serves around 600 points of sale in US stores like Bloomingdale’s and Nordstrom.
In what will be PCA’s first retail acquisition, the deal will transfer ownership of all systems, concepts, employees and a shop-in-shop partnership with Walmart.
Space NK chief executive Andy Lightfoot said: “Three years ago, we pivoted the US business to focus solely on high-service wholesale with a clear vision of providing brands the structure and support to achieve success in the US retail landscape.
“Now backed by scale and mature systems, we have total confidence that this partnership will benefit all of our retail and brand partners in achieving that goal.”
He added that even though Space NK is growing fast, the retailer couldn’t take complete advantage of the opportunities in the US market and that it made commercial sense to separate the two businesses to get the most value.
The wholesale business will be renamed under its new owners, but its current brand and retail partnerships will remain unchanged.
PCA Companies CEO Piyush Golia said the firm was a “solution provider” that would help further grow the brands sold under Space NK.
The news comes after Sky News reported that Manzanita Capital, Space NK’s owner, had appointed investment bank Raymond James to handle a potential sale of the premium high street beauty chain.
Space NK could be valued between £300m and £400m, based on its latest financial performance. However, Manzanita Capital is undecided about whether to sell a partial or controlling interest in the retail business at this stage.
No comments yet