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Soho House returning to private ownership - and picks up a celebrity investor
Soho House, the global network of private members' clubs, is being bought by a group led by hotel owners MCR - valuing the business at $2.7bn (£1.99bn).
The deal will take the London-based hospitality group back into private ownership, meaning it will no longer be listed on the New York Stock Exchange. Actor-turned-investor Ashton Kutcher will lead a consortium providing new funding to the business - and will join Soho House's board of directors once the transaction is complete.
Money latest: Michelin restaurant launches water menu MCR is the third-largest hotel owner-operator in the US and owner of the BT Tower in London. But current shareholders - billionaire executive chairman Ron Burkle and his private equity company Yucaipa - will retain their majority controlling stakes, as will founder Nick Jones.
Private equity firms acquire businesses, invest to improve financial performance, and seek to then sell them for a profit. Holders of common stock of the company will receive $9 cash per share, far above the closing price on Friday afternoon.
Soho House's share price rose 16% in pre-market trading to $8.86. It was founded in London in 1995 by Mr Jones, a restaurateur, as a meeting place for creative people.
The club developed operations in Europe, North America and Asia and is known for stylish interiors and exclusivity. Despite only going public in 2021 the company appointed a committee to explore taking the company private as it struggled to turn a profit.
An offer had been received in December..
Amir Nisi
Creative and experienced content writer with 6+ years of experience lazy to create unique content strategy for News5 to turn website visitors into customers.
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