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AEG Facilities and SMG announce merger to create global venue management giant
AEG Facilities and SMG, two of the world’s largest managers of sport and entertainment venues, have announced that they are to merge as a new global entity, ASM Global.
The combination of AEG Facilities, the venue management subsidiary of AEG, and SMG will create a new, standalone global facility management and venue services company covering more than 310 facilities worldwide, including multiple NBA and NHL arenas and six NFL stadiums.
While financial terms were not disclosed, AEG Facilities and Onex, a private equity firm that acquired SMG for US$1 billion in 2017, will each own 50% of the new company.
The merged company will be based in Los Angeles, California, USA, with key operations based in West Conshohocken, Pennsylvania, USA, a suburb of Philadelphia. Led by the most experienced team in the industry, the company will operate a diversified portfolio of arenas, stadiums, convention centres and performing arts centres across five continents.
Management roles will see Bob Newman, President of AEG Facilities, become President and Chief Executive of ASM Global while Wes Westley, SMG’s Chief Executive will join the new company's board of directors.
Westley, who will retire pending completion of the merger, advised “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.”
Newman, a former Regional Vice President at SMG, stated “it is an honour 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.”
Dan Beckerman, President and Chief Executive of AEG, added “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.”
AEG will retain ownership of its real estate holdings outside of this venture, including its entertainment districts and owned venues in Los Angeles, USA; London, UK and Hamburg and Berlin in Germany, 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 subject to customary closing conditions and regulatory approvals.
Australia's AEG Ogden, a joint venture between AEG Facilities and Australian investors will become part of the ASM stable.
AEG Ogden currently manages convention and exhibition centres including Sydney’s Qudos Bank Arena, the Brisbane Entertainment Centre and adjacent Sports Centre, the Newcastle Entertainment Centre, RAC Arena in Perth, and Dubai Arena (opening April 2019) as well as Brisbane’s Suncorp Stadium.
AEG Ogden is also progressing the new Brisbane Live arena and entertainment precinct in the Queensland capital.
Lower images shows London's O2 Arena, managed by AEG.
26th January 2018 - Record breaking year for global concert business
30th January 2017 - AEG Facilities sell more than 12 million tickets worldwide during 2016
19th November 2016 - AEG announces formation of new AEG Rugby division
9th November 2016 - AEG Ogden to manage new Dubai Arena
9th October 2016 - Oman Convention and Exhibition Centre opens for business
11th August 2016 - AEG Facilities launches Global Solutions Division
7th September 2011 - AEG launches ticketing and entertainment platform
5th November 2009 - Spotless and SMG Unite in Bid to manage Perth Arena
14th December 2007 - Ogden IFC attracts AEG investment to become AEG Ogden
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