Summary
- Soho House is going private in a $2.7 billion deal led by MCR Hotels
- Shareholders get $9 per share, and Ashton Kutcher will join the company’s board
- The move aims to provide the brand with more stability away from the public market
Soho House, the exclusive global network of members-only clubs, is set to be taken private in a $2.7 billion deal USD, capping a turbulent period as a public company. The transaction is being led by New York-based MCR Hotels, following a period of financial struggles that saw the company’s value nearly halve since its 2021 market debut.
Under the terms of the agreement, shareholders will receive $9 USD per share, a 17.8% premium over the previous closing price. This news sent the company’s shares surging by 16% in premarket trading. As part of the new ownership structure, founder Nick Jones and executive chairman Ron Burkle’s investment firm, Yucaipa, will retain majority control of the business.
In a move to strengthen its leadership, the company announced that actor and tech investor Ashton Kutcher will join its board of directors. Additionally, hospitality veteran Neil Thomson has been named the new chief financial officer, effective immediately. The deal has received a vote of confidence from prominent hedge fund manager Daniel Loeb, who, as a major shareholder, expressed his support for the planned move.
This privatization will allow the company, which began as a single meeting place for creative people in London in 1995, to focus on its core business away from public market pressures. The new financial backing from MCR Hotels and others is expected to give the brand more stability for future growth.
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