A consortium of investors led by MCR Hotels and CEO Tyler Morse has agreed to take Soho House & Co. (NYSE:SHCO) private. MCR owns notable New York properties, including the High Line, Gramercy Park, and other landmark hotels.
The deal values the members’ club and hotel operator at around $2.7 billion, including debt. Shareholders are set to receive $9 per share in cash, a 17.8% premium over Friday’s closing price of $7.64. Relative to the last trading day before the announcement, the premium jumps to 83%.
Following completion, Tyler Morse will join the company’s board, while billionaire Ron Burkle, the current CEO, will maintain a majority stake through Yucaipa Companies.
Financial backing comes from funds affiliated with Apollo Global Management (NYSE:APO), which will contribute over $700 million in equity and debt, providing the necessary support for the company’s delisting.
The move comes after months of pressure from activist investors, including Dan Loeb of Third Point, who had pushed for a higher offer. Since its 2021 IPO, Soho House has lost nearly half of its market value amid financial challenges.
Despite past struggles, the stock has climbed more than 30% in the past year. In pre-market trading on Monday, shares surged 16.1% to $8.87.
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