AEG Facilities to merge with SMG to operate 310 venues across five continents
AEG Facilities, the venue management subsidiary of AEG, the US sports teams and facilities owner, is to merge with SMG, the manager of convention centres, stadia, arenas, theatres, performing arts centres and other venues.
The merger will create a new, standalone global facility management and venue services company that will operate as ASM Global.
Onex, the private equity company that owns SMG, and AEG Facilities will each own 50 per cent of the merged entity, which will be headquartered in Los Angeles, California in USA.
The company will operate over 310 venues across five continents.
AEG will retain ownership of its owned venues in Los Angeles, London, Hamburg and Berlin, as well as its extensive development, sports, music and sponsorship divisions.
SMG presently controls around 260 sports facilities and arenas around the world including the NFL’s U.S. Bank Stadium in Minneapolis, Soldier Field (pictured) in Chicago and the Mercedes-Benz Superdome in New Orleans.
Onex is contributing its entire equity investment in SMG into the merger.
Wes Westley, chief executive and president of SMG, said: “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, president of AEG Facilities and formerly a regional vice-president at SMG, said: “It is an honour and privilege to be a part of this exciting new company, which brings together the two organisations 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.”
Newman will become president and chief executive of ASM, following the transaction, while Westley will join ASM’s board of directors.