Soho House to go private in a $2.7 billion deal with Ashton Kutcher joining the board, offering a premium for public shareholders.
Shares of Soho House & Co. (NYSE: SHCO) are surging following the announcement of a definitive take-private agreement valuing the company at approximately $2.7 billion, including debt. The deal, led by hotel giant MCR Hotels and a consortium of strategic investors that includes prominent actor and venture capitalist Ashton Kutcher, marks a decisive end to the members-only club’s turbulent run on the public market.
The move comes as a significant catalyst for SHCO stock, which jumped more than 15% on Monday's news, trading at around $8.78. This represents a substantial premium over its closing price of $7.64 on Friday, though it remains notably below its $14 per-share IPO price from July 2021. The agreement will see existing public shareholders receive $9.00 in cash per share, a move that provides a clean exit at a premium for investors who have endured a volatile trading period.
The decision to go private follows a period of financial struggle and a stock performance that saw the company’s value nearly halved since its market debut. Despite consistent revenue and membership growth, the company has grappled with profitability concerns, leading to a "take-private" offer first announced in late 2024. The newly signed agreement, which also includes financing from affiliates of Apollo Global Management, is expected to provide the capital stability and long-term focus needed to expand the brand away from the pressures of quarterly public reporting.
As part of the new ownership structure, Ashton Kutcher is set to join the company's board of directors, a notable addition that underscores the strategic investors' vision for the brand. Kutcher, a seasoned tech investor with a keen eye for innovative consumer businesses, brings a new layer of celebrity and Silicon Valley credibility to the exclusive club. MCR Hotels CEO Tyler Morse will also join the board as Vice Chairman.
The transaction is expected to be finalized by the end of 2025, pending regulatory approvals. Upon completion, Soho House will delist from the New York Stock Exchange, returning the brand to private ownership. This shift aims to refocus the company on its core business—curating a global network of exclusive, creative-focused venues—while a new leadership and financial backing team steers its growth trajectory. Investors who have held onto their shares now await the closing of the deal, which offers a clear path to cashing out at the agreed-upon price.
Comments
Post a Comment