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15 handpicked stocks

Ulta's UK Splash: Beauty M&A

This carefully selected group of stocks represents companies positioned to benefit from increasing beauty industry consolidation. Following Ulta Beauty's acquisition of British retailer Space NK, we've identified both potential acquirers with deep pockets and attractive takeover targets in the global beauty market.

Author avatar

Han Tan | Market Analyst

Published on July 11

Your Basket's Financial Footprint

Structured summary of basket market capitalisation and investor takeaways.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and returns that tend to track broad-market performance.
  • Suitable as a core, long-term holding rather than a speculative, high-growth position.
  • Likely to deliver steady, long-term appreciation rather than frequent, explosive short-term gains.
Total Market Cap
  • ULTA: $23.58B

  • EL: $35.51B

  • COTY: $3.62B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Beauty industry consolidation is accelerating as major players seek international growth through strategic acquisitions. Ulta's purchase of Space NK signals a new wave of cross-border M&A activity that creates investment opportunities in both potential buyers with acquisition plans and innovative brands that make attractive takeover targets.

2

What You Need to Know

This collection includes established beauty conglomerates with financial resources to make acquisitions, as well as high-growth brands with strong regional footholds or unique market positions. M&A activity can create value through acquisition premiums, operational synergies, and expanded distribution networks for beauty companies.

3

Why These Stocks

These companies were carefully selected to provide exposure to different aspects of beauty industry consolidation. The list includes the deal catalyst (Ulta), major conglomerates likely to pursue similar international acquisitions, and innovative smaller companies that represent attractive acquisition targets due to their growth or market position.

Why You'll Want to Watch These Stocks

💄

Beauty Industry Shake-Up

Ulta's acquisition of Space NK signals the start of a new wave of cross-border beauty deals. Companies in this group are positioned to either make strategic acquisitions or become attractive takeover targets.

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Acquisition Premium Potential

When beauty companies get acquired, their stock prices often jump significantly. Several smaller companies in this collection have the innovative products and brand loyalty that make them attractive takeover candidates.

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Global Growth Opportunity

International expansion through M&A offers beauty companies access to new markets and customer bases. This collection includes both established global players and regional specialists poised to benefit from cross-border deal-making.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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