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4w ago

Soho House to Go Private in $2.7 Billion MCR-Led Deal at $9 a Share

The move is pitched as a reset outside public markets to pursue longer-term operational improvements, pending approvals for a planned year-end close.

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Soho House is seen on Greek street, London, Britain, July 13, 2021. REUTERS/Peter Nicholls/File Photo

Overview

  • Shareholders will receive $9.00 in cash per share, valuing the company at about $2.7 billion including debt under a definitive agreement announced August 18.
  • Executive Chairman Ron Burkle’s Yucaipa and founder Nick Jones will roll their stakes and retain majority control, while MCR makes a new-money investment and becomes a shareholder.
  • MCR CEO Tyler Morse will join the board as vice chairman and actor-investor Ashton Kutcher will become a director upon completion; Neil Thomson was named chief financial officer effective immediately.
  • Funds managed by affiliates of Apollo Global Management are providing hybrid financing involving debt and equity to support the transaction and refinance existing senior secured notes, with additional capital from investors including Goldman Sachs Alternatives.
  • The offer represents roughly an 18% premium to the prior close and shares jumped about 15–16% on the news; the deal requires regulatory clearances and a shareholder vote and would delist Soho House from the NYSE if it closes by year-end 2025.