Soho House, the global network of private members’ clubs, is being acquired by a consortium led by hotel owners MCR, with the business being valued at $2.7bn (£1.99bn).
This transaction will bring the London-based hospitality group back into private ownership, removing its listing on the New York Stock Exchange.
Actor and investor Ashton Kutcher will spearhead the consortium providing additional funding to Soho House and will also join the board of directors post-closure of the deal.
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MCR, the third-largest hotel owner-operator in the US, is also the owner of the BT Tower in London.
While billionaire executive chairman Ron Burkle and his private equity firm Yucaipa will maintain their majority stakes, founder Nick Jones will also retain ownership.
Private equity firms typically acquire businesses, enhance their financial performance, and aim to sell them at a profit.
Shareholders will receive $9 in cash per share, a significant increase from the previous closing price. Soho House’s stock price surged 16% in pre-market trading to $8.86.
Founded in London in 1995 by restaurateur Mr. Jones, Soho House initially served as a gathering place for creatives. The club expanded its operations across Europe, North America, and Asia, gaining renown for its chic interiors and exclusivity.
Despite its 2021 initial public offering, the company faced profitability challenges, prompting the exploration of going private. An acquisition offer was received in December.