Soho House members’ club chain to be taken private in $2.7bn deal

Soho House & Co, the private members’ club operator, has agreed to be taken private in a deal valuing the company at about $2.7 billion, a move that ends its four-year run as a U.S.-listed stock.

Soho House & Co, the private members’ club operator, has agreed to be taken private

Existing majority owner Ron Burkle’s MCR Hotels consortium will lead the buyout, paying roughly $9 a share for the publicly traded portion of Soho House. The announcement said tech investor and long-time member Ashton Kutcher would also join Soho House’s board of directors as part of the transaction.

The deal implies an enterprise value of approximately $2.7 billion (including about $700 million of debt). Andrew Carnie, Soho House’s chief executive, said the take-private plan “reflects the strong confidence our existing and incoming shareholders have in the future of Soho House & Co”, citing the brand’s resilience despite challenging economic conditions . Founded in London in 1995, Soho House operates ten clubs in the city and about 48 globally – from Paris and Istanbul to Bangkok and Mumbai . The group also has clubs in key U.S. cities, including New York (three clubs) and Los Angeles (four clubs) .

Investors had questioned Soho House’s performance after a pandemic-related slump in membership revenue. MCR Hotels, chaired by Burkle, believes the brand’s strong loyal base and global expansion justify the investment. Katy Nichols, head of MCR, said the consortium is “excited to work closely with the Soho House team and management to help accelerate its future growth plans.” The buyout will close subject to regulatory approvals.