Shares of Soho House (SHCO) surged 16% on news of a $2.7 billion deal to go private with MCR Hotels. The agreement values the company at $9 per share, an 18% premium. CEO Andrew Carnie expressed confidence in the move, citing continued transformation and strong shareholder support.

The decision to go private follows speculation fueled by a critical report in 2024, which questioned Soho House’s business model and accounting practices. The firm, GlassHouse Research, set a $0 price target on the stock. Soho House refuted the report’s claims and initiated a board committee to explore options.

MCR Hotels will take control of Soho House’s publicly traded stock, with founders Nick Jones and Ron Burkle retaining a majority stake. Ashton Kutcher will join the board. Apollo Global Management is providing financing for the transaction. Soho House initially went public in 2021, raising $420 million.

Neil Thompson, formerly of Tasty Restaurant Group, will take over as CFO. MCR Hotels owns various New York properties, including the Gramercy Park Hotel and JFK Airport’s TWA Hotel. The move to go private signals a new chapter for Soho House, backed by strong shareholder confidence and industry partnerships.

Read more at Yahoo Finance: Private club operator Soho House going private in $2.7 billion deal