Breaking: AEG Facilities And SMG To Merge, Form ASM Global
AEG Facilities and SMG are combining their venue management powers, as they announced Feb. 7 the signing of a definitive agreement to merge. The two will create a new company called ASM Global, which will be a 50/50 split between AEG and Onex, the private equity firm that owns SMG.
The new company will be based in Los Angeles and will have “key operations” in West Conshohocken, Pa. The two companies’ combined portfolio now includes 310 venues on five continents.
Bob Newman is currently president of AEG Facilities and was once a regional vice president at SMG. He said in a statement: “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.”
See Also: Executive Profile, Bob Newman, AEG Facilities
Wes Westley, CEO and president of SMG, said in a statement: “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.”
Dan Beckerman, President and CEO of AEG, said in a statement: “AEG Facilities has flourished under Bob [Newman’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.”
In the deal, AEG retains ownership of its real estate holdings including the LA Live entertainment district in Los Angeles, and venues it owns in London, Hamburg and Berlin. Onex said it is contributing its “entire equity investment in SMG” into the new company.
The deal still needs regulatory approval and expected to be finalized later in the year.
AEG and SMG are giants in North American venue management and a merger would create an unparalleled venue network on the continent.
Toronto-based Onex announced its intention to acquire SMG in December 2017, with Westley saying at the time “Onex values the deep relationships our general managers have cultivated within the municipalities we serve, and its ownership mentality and long-term focus make it an ideal partner for us.”
Pollstar reached out to AEG and SMG for comment but hadn’t heard back at press time.