Soho House stock hits three-year high on take-private bid, Ashton Kutcher involvement

Shares of Soho House & Co rose nearly 15% yesterday, August 18, to hit a three-year high after the company announced it would go private in a $2.7 billion deal led by New York-based MCR Hotels. The investor group includes actor Ashton Kutcher, who will join the Soho House board following the transaction.

Soho House shares rose nearly 15% to $8.78 apiece on the New York Stock Exchange yesterday. That marked its best close since March 2022.

The rally followed the announcement that a consortium led by New York-based MCR Hotels, the third-largest hotel operator in the U.S., had agreed to take the company private in a deal valuing it at $2.7 billion, or $9 per share. That is about 83% above the value on December 18, 2024, the day before Soho House received the offer, according to the announcement.

"We determined that the $9.00 per share in cash consideration delivers meaningful and immediate value to stockholders," said Eric Deardorff, chair of the special committee formed to review the offer. Soho House CEO Andrew Carnie added that “returning to private ownership enables us to build on this momentum, with the support of world class hospitality and investment partners.”

The deal is expected to close by year-end 2025, after which Soho House shares will be delisted. It has been approved by the company’s board, but still requires regulatory clearance and approval from a majority of Soho House shareholders.

The buyer consortium is led by MCR, whose portfolio includes New York’s TWA Hotel at JFK Airport, The High Line Hotel, Gramercy Park Hotel, and the BT Tower in London.

Under the terms of the deal, MCR will acquire Soho’s publicly traded shares, while founder Nick Jones and Executive Chair Ron Burkle, together with his investment firm Yucaipa, will retain majority control. Jones and Yucaipa already own about three quarters of the business, Reuters notes.

Funds managed by affiliates of Apollo Global Management will support the transaction through hybrid capital financing, contributing roughly $850 million in debt and equity, according to a Reuters' source.

A group of strategic investors led by actor and tech investor Ashton Kutcher will also participate in the financing. Kutcher, known for early investments in companies such as Foursquare, Skype, Spotify, SoundCloud, and Uber, will join Soho’s board following the deal.

Goldman Sachs Alternatives, which invested in Soho at the time of its 2021 IPO, will sell most of its stake but also provide additional capital to support the transaction.

Soho House was founded by restaurateur Nick Jones in 1995 in London as a meeting place for creative people, Reuters notes. Today it operates as an international network of private clubs serving members from the media, art, and fashion industries. Membership provides access to exclusive spaces including clubs, hotels, restaurants, spas, gyms, and event venues.

The company went public in 2021, but the stock has since lost about a third of its value. Despite steady growth in memberships and revenue, Soho has struggled to generate profit. Thus, less than three years after its market debut, the company had started considering a delisting.

The AI translation of this story was reviewed by a human editor.