Soho House to go private in $2.7B deal at $9 per share

Soho House has agreed to be taken private in a deal valued at about 2.7 billion, with New York-based MCR Hotels leading a consortium that includes private equity firm Apollo. The transaction would pay 9 a share, representing a premium to the company’s recent trading levels, and would carry about 700 million of debt into the new ownership structure. Existing shareholders, including founder Nick Jones and major investors Ron Burkle and Richard Caring, will retain their stakes, while Ashton Kutcher will join the board and MCR’s Tyler Morse will become vice chairman. The deal also contemplates a refinancing of the company’s debt and a continued, accelerated path for growth under private ownership.

The bid marks a return to private ownership for Soho House, which has been listed on the New York Stock Exchange since 2021. Since the IPO, the shares have traded well below their peak, and the company has faced scrutiny over its business model and the sustainability of rapid, high-cost expansion aimed at preserving exclusivity for a growing membership base. The buyers say the transaction provides a path to stabilize the balance sheet and to pursue international expansion with greater...