Soho House (NYSE:SHCO) has agreed to a $2.7 billion deal to return to private ownership, four years after the global network of private members’ clubs went public on the New York Stock Exchange.
Under the terms of the agreement, a group of investors led by US-based MCR Hotels and its chairman and CEO Tyler Morse will acquire outstanding shares not held by certain major shareholders.
Shareholders of common stock will receive $9 per share in cash, representing an approximately 83% premium over the closing price prior to the announcement in December 2024 that it had received an offer.
The transaction implies a total enterprise value of around $2.7 billion, including $700 million in debt.
Soho House founder Nick Jones, executive chairman Ron Burkle, Yucaipa Companies, and other significant shareholders, including Richard Caring and Goldman Sachs Alternatives, will roll their existing equity stakes and retain majority control of the business.
A consortium of strategic investors led by actor-turned-investor Ashton Kutcher will contribute new equity and join the company’s board, while Tyler Morse will serve as vice chairman.
Financing is supported by affiliates of Apollo Global Management and Goldman Sachs Alternatives through a combination of debt and equity.
“This transaction reflects the strong confidence our existing and incoming shareholders have in the future of Soho House, and the transformation we’ve led since becoming a public company,” Soho House CEO Andrew Carnie said in a statement.
“Returning to private ownership enables us to build on this momentum, with the support of world-class hospitality and investment partners.”
Since it was founded in London in 1995, Soho House has expanded into a global network of 46 locations, including cities such as New York, Los Angeles, Bangkok, São Paulo, Mexico City, Paris, and Rome.
The chain is known for catering to creative professionals and celebrity clientele, with annual membership fees reaching up to £2,920 for access across all properties.
The transaction, expected to close by the end of 2025, remains subject to regulatory approvals and other customary closing conditions.
Shares of Soho House surged almost 16% on the announcement, trading at about $8.80 late morning on Monday.