Luxury members club operator Soho House has agreed to return to private ownership through a $2.7 billion deal with an investor consortium headed by hospitality company MCR, according to a Monday company announcement.
The transaction will see MCR and its partners acquire all outstanding Soho House shares at $9 per share in cash. Executive Chairman Ron Burkle and other major stakeholders plan to maintain their equity positions and continue controlling the business under the new ownership structure.
Soho House stock surged more than 15 percent during Monday morning trading following disclosure of the signed agreement. The deal marks the end of a challenging four-year period for the company on public markets, where shares have declined approximately 30 percent since the initial public offering in July 2021.
The buyout values Soho House at roughly $2.7 billion, including its debt obligations. Management expects to finalize the transaction before the end of 2025, dependent on regulatory approval and standard closing requirements. After the transaction is completed, Soho House will stop trading on the New York Stock Exchange.
The deal brings notable additions to Soho House's leadership team. Actor-turned-technology investor Ashton Kutcher will join the company's board of directors after the transaction closes. Tyler Morse, chief executive of New York-based MCR, will assume the role of vice chairman on the board.
Morse said in a statement that MCR had “long admired” Soho House, stating that its investment in the company is a strategic opportunity to combine MCR’s operational expertise with “one of the most distinctive brands in hospitality.”
CEO Andrew Carnie emphasized the potential for the company's expansion and suggested that private ownership would accelerate the company’s growth. Carnie indicated that returning to private ownership will help the company "build on this momentum.”
The members-only club concept originated in 1995 when founder Nick Jones established the first location in London. The business has since expanded to encompass 46 Soho House venues globally, complemented by coworking facilities, beach clubs, and digital offerings.
Soho House positions itself as a "global membership platform of physical and digital spaces," marketing its primary clubs as a "home for creative people to come together and belong." The facilities feature spas, fitness centers, and premium amenities that attract celebrities and affluent clientele willing to pay annual membership fees typically reaching a several thousand dollars.
Despite its growth, the company's public market performance has disappointed investors. Since beginning trading in 2021, shares have fallen roughly 30 percent from their $14 IPO price, closing under $9 per share on Monday.