Live Nation Announces SMG/Aramark Deal
Music concert promoter Live Nation Inc. said Monday that it has signed a five-year, $100 million deal with Aramark Corp. and SMG-Savor to manage food and beverage concessions at 34 of its amphitheaters.
Aramark, a privately held provider of concessions management and various facilities services, and food and beverage services firm SMG-Savor will serve more than 8 million people annually at Live Nation (nyse: LYV – news – people ) venues. SMG-Savor is a unit of SMG, an operator of arenas, stadiums and convention centers owned by private equity firm American Capital Ltd.
Los Angeles-based Live Nation said concession sales at these amphitheaters bring in $100 million a year.
Jason Garner, chief executive of global music for Live Nation, said the company expects annual adjusted operating income from concessions to increase by 20 percent as a result of this partnership.
“We believe that this deal further strengthens our growth profile, despite the current economic slowdown,” Garner said in a statement.
Shares of Live Nation fell 25 cents, or 3 percent, to $8.20 in morning trading while American Capital lost a penny to $10.66.