Soho House Transitions to Private Ownership in a $2.7 Billion USD Transaction

Shareholders will get $9 per share, and Ashton Kutcher will be appointed to the company's board.

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Soho House, the exclusive global network of members-only clubs, is poised to transition to private ownership in a $2.7 billion USD transaction, concluding a tumultuous phase as a publicly traded entity. The transaction is spearheaded by MCR Hotels, headquartered in New York, after experiencing significant financial difficulties that resulted in a near 50% decline in the company's valuation since its market debut in 2021.

According to the agreement, shareholders would get $9 USD per share, reflecting a 17.8% premium over the last closing price. This announcement caused the company's shares to increase by 16% in premarket trading. Under the new ownership structure, founder Nick Jones and executive chairman Ron Burkle's investment firm, Yucaipa, would maintain majority control of the enterprise.

To enhance its leadership, the business declared that actor and technology investor Ashton Kutcher will join its board of directors. Furthermore, seasoned hotel professional Neil Thomson has been appointed as the new chief financial officer, effective immediately. The transaction has garnered endorsement from notable hedge fund manager Daniel Loeb, who, as a significant stakeholder, articulated his support for the proposed initiative.

The privatisation will enable the company, which originated as a singular venue for creatives in London in 1995, to concentrate on its primary operations free from public market constraints. The recent financial support from MCR Hotels and others is anticipated to provide the brand with enhanced stability for future expansion.