Venue management companies AEG Facilities and SMG have announced a definitive agreement to merge.
The deal between the market giants sees the creation of a new, standalone global facility management and venue services company that will operate as ASM Global (ASM). Onex, the private equity firm behind SMG, and AEG’s subsidiary will each own 50 per cent of the company following the completion of the transaction.
ASM will be headquartered in Los Angeles with key operations based in West Conshohocken, a suburb of Philadelphia. ASM will become the largest venue manager in the world, operating a portfolio of arenas, stadiums, convention facilities and performing arts centres, totalling more than 310 sites across five continents.
AEG will retain ownership of its real estate holdings outside of this venture, including its extensive development, sports, music and sponsorship divisions. Onex is contributing its entire equity investment in SMG into the merger.
AEG Facilities’ management portfolio includes London’s O2 Arena, the Barclays Center in Brooklyn, Newark’s Prudential Center and AmericanAirlines Arena in Miami. SMG is the venue manager for National Football League (NFL) stadiums such as New Orleans’ Mercedes-Benz Superdome, US Bank Stadium in Minnesota and Chicago's Soldier Field. In total, SMG will bring approximately 240 venues to the merger while AEG Facilities brings its 70 managed facilities.
Following the completion of the transaction, Bob Newman, current president of AEG Facilities and formerly a regional vice president at SMG, will be named president and chief executive of ASM. Wes Westley, current chief executive and president of SMG, will join ASM’s board of directors, where he will actively support the merger integration.
Newman said: “This transaction draws upon the depth of our combined talent and resources to create an organisation that will deliver value and long-term success, as well as innovative services to our clients around the world.”
“We plan to accelerate innovation by combining our expertise to deliver increased value and offer enhanced capabilities to municipalities and venue owners worldwide,” added Westley.
“At the same time, we expect that this transaction will offer employees at both our corporate headquarters and field operations tremendous new opportunities.”
The transaction is expected to be completed later this year subject to customary closing conditions and regulatory approvals.