Soho House & Co. received a takeover offer from a consortium of investors, valuing the members-only club operator at $9 a share, according to a company statement Thursday.
The proposal represents an 83% premium to Soho House’s closing price on December 18 and has garnered support from Executive Chairman Ron Burkle and his investment firm Yucaipa Companies.
The buyout offer would value the company at nearly $2 billion, below its IPO debut in 2021, when it had a market capitalization of $2.8 billion.
The identity of the third-party consortium wasn’t disclosed in the announcement. The deal structure would require major shareholders, including Burkle and Yucaipa, to roll over their existing equity stakes.
The offer emerged following a strategic review initiated by Yucaipa, which believes the company’s current share price fails to reflect its underlying value. In response, Soho House’s board has established an independent special committee to evaluate the proposition, the statement said.
The company, known for its upscale members clubs in mostly metropolitan areas worldwide, has struggled to maintain its stock price since going public and has never made a quarterly profit over more than two decades.
The board cautioned that there’s no guarantee the review will lead to a transaction or strategic shift.
Representatives for Soho House didn’t respond to an immediate request for comment other than to say they plan to provide no further updates unless a specific deal is approved or the review concludes.
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