Venue giants AEG Facilities and SMG have merged to form ASM Global, a new standalone global facility management and venue services company.
ASM will be headquartered in Los Angeles, with key operations based in West Conshohocken, Pennsylvania, a suburb of Philadelphia. The firm will operate more than 310 venues across five continents.
AEG Facilities is the venue management subsidiary of AEG, while SMG, which was owned by private equity firm Onex, owns Manchester-based SMG Europe, operator of Manchester Arena, Leeds' First Direct Arena and Utilita Arena in Newcastle.
Wes Westley, CEO 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, current president of AEG Facilities and formerly a regional VP 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 be named president and CEO of ASM, with Westley joining its board of directors.
Dan Beckerman, president and CEO of AEG, said: “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, including its entertainment districts and owned venues in Los Angeles (Staples Center), London (The O2), Hamburg (Barclaycard Arena) and Berlin (Mercedes-Benz Arena). Onex is contributing its entire equity investment in SMG into the merger.
Onex and AEG’s subsidiary will each own 50% of the company following the completion of the transaction, which is expected to be completed later this year, subject to regulatory approvals. Financial terms were not disclosed.