What: Space NK, a significant beauty partner for many US department stores, has sold its US activities.

Why this is important: The reason the CEO gives, “an increasing gap between US and UK markets” is questioning.

PCA Companies has expanded its portfolio by acquiring the North American wholesale division of British beauty retailer Space NK. This acquisition, PCA's first in the retail sector, includes around 600 points of sale at major department stores such as Bloomingdale's, Nordstrom, and Hudson’s Bay. The acquisition amount remains undisclosed.

In addition to this purchase, PCA announced a selective distribution partnership in North America with Italian fragrance house Fornasetti and the prestige perfume house Tiziana Terenzi. These brands complement PCA's existing niche luxury fragrance division, which includes Thomas Kosmala and Vahy.

Space NK's CEO, Andy Lightfoot, indicated that the divestment was strategic, as the UK and US businesses were increasingly operating distinctly. This move aims to better capitalize on opportunities within the US market. There are also rumors that Manzanita Capital, the owner of Space NK, is considering selling its UK operations. Analysts suggest this part of the business could fetch up to £400 million, although this valuation might be impacted by the recent sale of the US operations.

Manzanita Capital, which also owns Diptyque and Susanna Kaufmann, is reportedly planning an auction for Space NK's UK business later this year. The private equity firm has not yet decided whether it will retain a minority or majority stake post-sale, after two decades of ownership.

Space NK divests its US wholesale activities