Source: Sharecast
The members’ club operator said shareholders would receive $9 per share under the agreement, representing a 17.8% premium to Friday’s closing price of $7.64.
The deal valued the company at about $2bn in equity terms and includes $700m of debt. Soho House shares rose 15% in pre-market trading following the announcement.
Founded in London in 1995 by Nick Jones, Soho House had since expanded to 48 locations either open or planned worldwide, including Paris, Istanbul, Los Angeles and New York.
Its celebrity clientele had helped to cement its brand, but its efforts to expand while preserving exclusivity for its 270,000 members had been costly.
Since listing in 2021, the company had lost $739m, though it had reported profits in its last three quarters.
Its stock had fallen sharply from highs above $14 shortly after the initial public offering.
MCR Hotels, the third-largest hotel owner in the United States, would lead an investor group and see its chief executive Tyler Morse appointed vice-chair of Soho House’s board.
Actor and tech investor Ashton Kutcher would also join as a director.
Major shareholders including US billionaire Ron Burkle, Richard Caring, and Goldman Sachs would retain their stakes.
Soho House chief executive Andrew Carnie told the Guardian that returning to private ownership would allow the company to “build on this momentum” with the backing of “world class hospitality and investment partners.”
He added that the deal reflected investor confidence despite “challenging economic conditions and global uncertainty.”
Reporting by Josh White for Sharecast.com.