Soho House said it has entered into definitive agreements under which an investor group led by MCR and its Chairman and CEO, Tyler Morse, will acquire the outstanding shares of the company not held by certain significant shareholders.
Hollywood actor and technology investor Ashton Kutcher is leading a consortium of strategic investors who will provide additional new equity capital to private members club chain Soho House & Co (SHCO), the company said on Monday while announcing its take-private deal.
The firm will be taken private by a group of investors led by New York-based MCR Hotels in a $2.7 billion deal, including debt. Soho House has entered into definitive agreements under which an investor group led by MCR and its Chairman and CEO, Tyler Morse, will acquire the outstanding shares of Soho House not held by certain significant shareholders. Morse will join the board as Vice Chairman.
Kutcher will join Soho House’s board of directors following the completion of the transaction, the company added. The Hollywood Actor has invested in several technology companies over the last few years, including music streaming app Spotify and language learning app Duolingo.
The company said shareholders will receive $9.00 per share in cash, a premium of about 83% over the closing stock price as of Dec. 18, 2024, the last trading day before Soho House announced the receipt of the offer.
Shares of Soho House jumped over 16% in premarket trading. Retail sentiment on the stock improved to ‘bullish’ from ‘neutral’ territory, with chatter at ‘high’ levels, according to data from Stocktwits.
Soho House said its Executive Chairman, Ron Burkle, and the Yucaipa Companies LLC will roll their controlling equity interests in the company and retain majority control of the business. The company added that funds managed by affiliates of Apollo are supporting the transaction through a hybrid capital solution.
“After detailed consideration by the Special Committee with the assistance of our outside financial and legal advisors, we determined that the $9.00 per share in cash consideration delivers meaningful and immediate value to stockholders,” Eric Deardorff, Chairman of the Special Committee, which was reviewing the deal, said.
Shares of Soho House rose nearly 3% so far this year and jumped about 35% in the last 12 months.
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