Soho House to go private in $2.7 billion deal led by MCR

LONDON - Soho House & Co Inc. (NYSE:SHCO) announced Monday it has agreed to be acquired by an investor group led by MCR and its Chairman and CEO Tyler Morse in a deal valuing the company at approximately $2.7 billion.

Under the terms of the agreement, public shareholders will receive $9.00 per share in cash, representing an 83% premium over the closing stock price on December 18, 2024, the last trading day before Soho House announced receipt of the offer. For detailed analysis of similar premium offerings and M&A valuations across the hospitality sector, InvestingPro subscribers can access comprehensive research reports covering 1,400+ US stocks, including peer comparison tools and expert insights.

Executive Chairman Ron Burkle and Yucaipa Companies LLC will maintain their controlling equity interests in the company, while MCR, the third largest hotel owner-operator in the United States, will become a shareholder. Tyler Morse will join Soho House’s Board of Directors as Vice Chairman.

Funds managed by Apollo affiliates will support the transaction through a hybrid capital solution, providing additional debt and equity financing. A portion of the proceeds will refinance the company’s existing Senior Secured Notes.

Additional equity capital will come from a consortium led by technology investor Ashton Kutcher, who will also join the company’s Board following the transaction. Existing shareholders including Richard Caring, Nick Jones, and Goldman Sachs Alternatives will roll the majority of their shares.

"This transaction reflects the strong confidence our existing and incoming shareholders have in the future of Soho House & Co.," said Andrew Carnie, CEO of Soho House & Co. "Returning to private ownership enables us to build on this momentum, with the support of world class hospitality and investment partners."

The transaction, unanimously approved by the company’s Board of Directors upon recommendation from a Special Committee of independent directors, is expected to close by the end of 2025, subject to regulatory approvals and other closing conditions.

Upon completion, Soho House’s common stock will cease trading on the New York Stock Exchange.

The information in this article is based on a press release statement from Soho House & Co Inc.

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