Soho House Surges with Stock Buyout Offer

Soho House & Co Inc. (NYSE: SHCO) shares surged 56% following the announcement of a significant acquisition offer and strong third-quarter financial results. Earlier this week, the company received a buyout proposal from a third-party consortium valued at $9.00 per share. This offer represents an 83% premium based on the closing price on Wednesday, December 18, 2024. The proposal is backed by key shareholders, including Executive Chairman Ron Burkle and The Yucaipa Companies, contingent upon these shareholders transferring their own stakes.

The Board of Directors has established a Special Committee to assess the offer and stated that no further announcements will be made until a definitive decision is reached. The market's reaction is seen as reflecting optimism, as the potential acquisition suggests confidence in the company’s value not currently reflected in its share price.

In addition to the acquisition news, Soho House announced robust third-quarter earnings. Total revenues reached $333.4 million, marking a 13.6% year-over-year increase. Membership revenues increased by 16.7% year-over-year to $107.4 million, accounting for 32.2% of total revenues. The company also experienced a 4.8% year-over-year growth in total membership numbers and a 13% increase in Soho House members. The membership waiting list remains at record levels, indicating sustained demand for the services offered by the company.

Soho House & Co operates a global membership platform that encompasses both physical and digital spaces, attracting a diverse and vibrant member base. The platform allows members to work, socialize, connect, and create around the world. The company's strong financial performance and potential acquisition have led to a significant increase in share price as investors respond positively to the developments.