February 20, 2019 — AEG Facilities, the venue management subsidiary of sports and live entertainment company AEG, and SMG, a portfolio company of private equity firm Onex, recently announced they have signed a definitive agreement to merge. This combination will create a new, standalone global facilities management (FM) and venue services company that will operate as ASM Global. Onex and AEG’s subsidiary will each own 50% of the company upon completion of the transaction.
ASM will be headquartered in Los Angeles, CA, with key operations based in West Conshohocken, PA, a suburb of Philadelphia. Led by a highly experienced team, the company will operate a diversified portfolio of arenas, stadiums, convention centers and performing arts centers, with more than 310 venues across five continents.
Wes Westley, chief executive officer and president of SMG, remarked:
This merger is a major step for our industry. We are excited to bring together these complementary businesses to further elevate the standard of excellence in venue management. We plan to accelerate innovation by combining our expertise to deliver increased value and offer enhanced capabilities to municipalities and venue owners worldwide. At the same time, we expect that this transaction will offer employees at both our corporate headquarters and field operations tremendous new opportunities.
Bob Newman, current president of AEG Facilities and formerly a regional vice president at SMG, stated:
It is an honor and privilege to be a part of this exciting new company, which brings together the two organizations where I have worked for the bulk of my professional career. This transaction draws upon the depth of our combined talent and resources to create an organization that will deliver value and long-term success, as well as innovative services to our clients around the world.
Following the completion of the transaction, Newman will be named president and CEO of ASM. Westley will join ASM’s Board of Directors, where he will actively support the merger integration.
Dan Beckerman, president and chief executive officer of AEG, said:
AEG Facilities has flourished under Bob’s leadership since it was established a decade ago, and this combination will position ASM for growth by joining the resources and talents of these two companies. ASM will offer an impressive array of capabilities that will accelerate the development and deployment of new services and bring diverse business, sports and entertainment experiences to municipalities, partners and fans around the world.
Amir Motamedi, a managing director of Onex, added:
With Wes at the helm, SMG became a gold standard in venue management. We are grateful for his stewardship over the last 25 years and look forward to his continued involvement on the board. Looking forward, we are thrilled to be partnering with Bob Newman and the talented AEG team to create a larger, more diverse company to better serve ASM’s clients.
AEG will retain ownership of its real estate holdings outside of this venture, including its entertainment districts and owned venues in Los Angeles, London, Hamburg and Berlin, as well as its extensive development, sports, music and sponsorship divisions. Onex is contributing its entire equity investment in SMG into the merger. The transaction is expected to be completed later this year.
Founded in 1977, SMG provides management services to more than 240 public assembly facilities including convention and exhibition centers, arenas, stadiums, theatres, performing arts centers, equestrian facilities and a variety of other venues. With facilities across the globe, SMG manages more than 20 million square feet of exhibition space and over 1.6 million sports and entertainment seats. SMG provides venue management, sales, marketing, event booking and programming, construction and design consulting, and pre-opening services. SMG Europe manages entertainment venues and food and beverage operations at locations throughout Europe.
AEG Facilities operates preeminent venues worldwide across five continents, providing complete venue management as well as specialized programs in operations, guest services, ticketing, booking, sales and marketing. AEG Facilities also provides its clients resources and access to other AEG-affiliated entities to support their success.