By John Meyer, consultant in financial affairs – Eurasia Business News, August 18, 2025. Article no. 1720

Soho House has confirmed a deal to go private in a transaction valued at approximately $2.7 billion, including debt. The members’ club operator will be acquired by a consortium of investors led by New York-based MCR Hotels. Shareholders will receive $9 per share, representing a 17.8% premium over the stock’s closing price of $7.64 on the previous Friday. This announcement caused Soho House shares to surge about 15% before the market opened.

Soho House has been publicly traded since 2021 but has struggled financially, with its market value declining by over 46% since its initial public offering in New York. The current public valuation was around $1.49 billion, but the new private equity transaction values the company significantly higher at $2.7 billion on an enterprise value basis.

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Billionaire Ron Burkle, holding a controlling stake, is expected to remain invested, along with other shareholders. Apollo Global Management is also reported to be contributing a substantial part of the equity and debt financing to facilitate the deal.

The privatization move is seen as a strategic effort to give Soho House greater operational flexibility and long-term growth prospects outside the pressure of quarterly public market expectations.

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© Copyright 2025 – Eurasia Business News. Article no. 1720