LOS ANGELES (CelebrityAccess) — AEG Facilities, the venue management arm of AEG, and facilities management company SMG, announced they have agreed to merge.
The combination will create a new, standalone global facility management and venue services company that will operate under the flag of ASM Global.
Following the completion of the merger, SMG’s parent, private equity investor ONEX and AEG’s subsidiary will each own a 50% stake in the new company. The full financial terms of the deal were not disclosed.
ASM will be headquartered in Los Angeles, CA, with additional operations based out of SMG’s former headquarters in West Conshohocken, PA, a suburb of Philadelphia.
Following the merger, ASM Global will operate a diversified portfolio of arenas, stadiums, convention centers and performing arts centers, with more than 310 venues across five continents.
Following the completion of the transaction, Bob Newman, current President of AEG Facilities and formerly a Regional Vice President at SMG will be named President and CEO of ASM. Wes Westley, Chief Executive Officer and President of SMG will join ASM’s Board of Directors, where he will actively support the integration of the two companies post-merger.
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 subject to customary closing conditions and regulatory approvals.
“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,” Mr. Westley said.
“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,” Mr. Newman added.