Soho House to Go Private with $2.7 Billion Offer

Soho House & Co has agreed to a $2.7 billion deal to go private, with MCR Investors and Apollo providing financing. Major shareholders will retain controlling stakes, while investors like Ashton Kutcher will join the consortium. The deal requires regulatory clearance and shareholder approval, with a closing expected by end-2025. Neil Thomson will become CFO, replacing Thomas Allen.

Soho House & Co, the high-end members club operator, has agreed to a $2.7 billion deal to go private, led by New York-based MCR Hotels. The deal, announced on August 18, 2025, will see MCR Hotels acquire Soho's publicly traded shares, while major shareholders, including founder Nick Jones and Executive Chairman Ron Burkle, will retain majority control of the business [1].

The deal, which requires regulatory clearance and shareholder approval, is expected to close by the end of 2025. Shareholders will receive $9 per share, a 17.8% premium to the closing price on Friday, August 17, 2025. Soho's shares rose 16% in premarket trading to $8.86 following the announcement [1].

Actor and tech investor Ashton Kutcher will join Soho's board following the deal, and hospitality veteran Neil Thomson will succeed Thomas Allen as chief financial officer immediately [1]. The appointment of Thomson, who has extensive experience in the hospitality sector, is seen as a strategic move to help the company navigate its financial struggles and ensure its long-term future [2].

The deal comes after Soho House struggled to turn a profit despite growth in membership and revenue. The company formed a special board committee to explore going private in 2024, as it faced significant financial challenges [1]. Daniel Loeb, whose hedge fund Third Point owns a nearly 10% stake in Soho, had earlier this year urged the company for a "fair" sales process. However, Loeb has since expressed support for the planned move [2].

Funds managed by affiliates of Apollo Global Management are supporting the deal through hybrid capital financing, which combines debt and equity. Apollo's contribution to the deal is worth around $850 million in debt and equity [2]. The use of hybrid financing is seen as a strategic move by Apollo to expand its portfolio and participate in situations where it would not typically invest [2].

The deal highlights the challenges faced by high-end members clubs in the hospitality industry, where rapid expansion and changing consumer spending patterns can put significant pressure on profitability. However, the involvement of experienced investors like MCR Hotels and Apollo, along with the appointment of a new CFO, suggests that Soho House is taking steps to address these challenges and secure its long-term future.

References:
[1] https://www.reuters.com/business/soho-house-go-private-27-billion-deal-ashton-kutcher-join-board-2025-08-18/
[2] https://finance.yahoo.com/news/mcr-hotels-soho-house-private-101425971.html