Venue management companies AEG Facilities
will merge, according to an announcement on Feb. 7, creating a new standalone venue-services outfit, ASM Global. The Los Angeles-based company will manage a combined 310 venues, including convention and exhibition centers, arenas, stadiums, theaters and more. AEG Facilities (a subsidiary of live-entertainment company AEG) and Onex, SMG's parent company, will each own 50 percent of ASM Global once the transaction is finalized, which is expected to happen later this year. Bob Newman, current AEG Facilities president, will take over as president and CEO of ASM, while Wes Westley, current CEO and president of SMG, will serve on ASM's board of directors.
"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," said Newman, also a former regional vice president at SMG, in a statement. "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."
ASM Global will have a portfolio that includes the Los Angeles Convention Center (pictured), the Puerto Rico Convention Center, Detroit's Cobo Convention Center and many other facilities, as well as stadiums and arenas including New Orleans' Mercedes-Benz Superdome; the Oracle Arena in Oakland, Calif.; and the Prudential Center in Newark, N.J. The deal does not include properties and entertainment districts owned by AEG in Los Angeles, London, Hamburg and Berlin, or those under development. AEG Facilities' venue-development contracts will be AEG's primary contribution to the deal, while Onex is contributing its full-equity investment in SMG to the new entity.
"This merger is a major step for our industry," said SMG's Westley. "We are excited to bring together these complementary businesses to further elevate the standard of excellence in venue management."