Soho House & Co. Agrees to $2.7 Billion Take-Private Deal with MCR Investors

Soho House & Co Inc. has agreed to a definitive take-private deal, with shareholders receiving $9.00 per share in cash, an 83% premium. Existing shareholders Ron Burkle and Yucaipa will roll their controlling equity interests, while MCR Investors will make a new investment. Apollo will provide financing through a hybrid capital solution, and Goldman Sachs Alternatives will continue its financial support. The deal implies a total enterprise value of approximately $2.7 billion.

Title: Soho House & Co. Inc. Agrees to $2.7 Billion Take-Private Deal

Soho House & Co. Inc. (SHCO), the global membership platform known for its exclusive hospitality offerings, has agreed to a definitive take-private deal, with shareholders receiving $9.00 per share in cash. This represents an 83% premium over the unaffected share price, totaling an enterprise value of approximately $2.7 billion. The transaction is expected to be completed by the end of 2025 pending regulatory approvals.

The deal involves an investor group led by MCR Hotels and its Chairman and CEO Tyler Morse. MCR, a major U.S. hotel group, will become a shareholder in SHCO. Existing shareholders, including Ron Burkle and Yucaipa, will roll over their controlling equity interests, retaining majority control of the business. Additionally, prominent technology investor Ashton Kutcher will join the company's board of directors following the transaction's completion.

Apollo Funds will provide financing through a hybrid capital solution, which includes additional capital in the form of debt and common equity. Goldman Sachs Alternatives will continue its financial support, committing additional capital to the transaction. The hybrid capital solution will also be used to refinance the company's existing Senior Secured Notes.

The transaction is supported by a Special Committee formed by SHCO's Board of Directors, comprised solely of independent directors. The committee's unanimous recommendation for the deal underscores the strategic move to enhance business efficiency and capitalize on growth opportunities without the constraints of public market pressures.

This move follows a challenging period on the New York Stock Exchange where SHCO's valuation had dropped notably, largely due to the mismatch between its bespoke hospitality model and the demands of quarterly performance expectations. The privatization aims to strengthen brand exclusivity and operational flexibility while retaining its global membership base of over 270,000 members.

Upon completion, SHCO will refocus on delivering premium hospitality experiences and nurturing its global membership base. The company aims to preserve its core values of exclusivity and innovation in hospitality, confident in the strength of its model to propel the brand forward on a global scale.

# References:
[1] https://www.ainvest.com/news/soho-house-ashton-kutcher-deal-2-7-billion-buyout-privatize-iconic-club-2508/
[2] https://www.globenewswire.com/news-release/2025/08/19/3135798/0/en/SHCO-Alert-Monsey-Firm-of-Wohl-Fruchter-Investigating-Fairness-of-the-Proposed-Sale-of-Soho-House-Co-Inc-to-MCR-Hotels.html
[3] https://sohohouseco.com/news-and-events/news-details/2025/Soho-House--Co-Inc--Signs-Definitive-Take-Private-Agreement/default.aspx