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Reuters
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Soho House is going private in a $2.7 billion deal led by New York-based MCR Hotels, capping a turbulent market run and financial struggles for the operator of high-end members’ clubs since it went public in 2021.
Shareholders of Soho will get $9 per share, the company said Monday, a 17.8% premium to Friday’s closing price.
Actor and tech investor Ashton Kutcher will also be joining Soho’s board following the deal, and the company named hospitality veteran Neil Thomson as chief financial officer to succeed Thomas Allen.
Soho was started by restaurateur Nick Jones in 1995 on London’s Greek Street above his restaurant, Cafe Boheme, as a meeting place for creative people. Known for its stylish interiors and exclusivity, the club now has operations across Europe, North America and Asia.
But less than three years after going public, Soho formed a special board committee to explore taking the company private, as it struggled to turn a profit despite growth in membership and revenue.
Under the new deal, MCR Hotels will get Soho’s publicly traded shares while founder Nick Jones and Executive Chairman Ron Burkle and his investment firm Yucaipa will retain majority control of the business.
Daniel Loeb, whose hedge fund Third Point owns a nearly 10% stake in Soho, had earlier this year urged the company for a “fair” sales process after Soho announced a take-private offer from an unnamed consortium late in 2024.
The billionaire investor had said other parties with experience investing in the hospitality sector might be interested in the asset. He had also called the $9-a-share offer a “sweetheart” deal and pointed to Burkle’s “conflicts of interest and undue influence on the board.”
Burkle’s Yucaipa and founder Jones collectively own about three-quarters of the company.
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