Plans for a significant merger in the facility management industry are taking shape, as AEG Facilities will merge with Onex-owned SMG to form ASM Global. Onex and AEG’s subsidiary will each own 50 percent of the company following the completion of the transaction. The terms of the transaction were not disclosed.
Pending regulatory approval, the merger would combine SMG’s broad facility management portfolio with the AEG subsidiary AEG Facilities under the ASM name. Aside from NFL stadiums such as Mercedes-Benz Superdome in New Orleans and Soldier Field in Chicago, SMG’s facilities include notable arenas such as Chesapeake Energy Arena in Oklahoma City, Dunkin’ Donuts Center in Providence, Mohegan Sun Arena in Wilkes-Barre, Smoothie King Center in New Orleans, and more.
What will not factor into the merger are AEG’s real estate holdings, which include owned venues such as Los Angeles’ Staples Center and entertainment complexes surrounding several of its facilities. The merger is slated to close later this year, contingent upon customary closing conditions and regulatory approvals.
ASM will be headquartered in Los Angeles, CA, with key operations based in West Conshohocken, PA, a suburb of Philadelphia.
“This merger is a major step for our industry,”said Wes Westley, Chief Executive Officer and President of SMG. “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.”
“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 Bob Newman, current President of AEG Facilities and formerly a Regional Vice President at SMG. “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.”
Following the completion of the transaction, Newman will be named President and CEO of ASM. Westley will join ASM’s Board of Directors, where he will actively support the merger integration.
“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,” said Dan Beckerman, President and Chief Executive Officer of AEG. “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.”
“With Wes at the helm, SMG became a gold standard in venue management,” said Amir Motamedi, a Managing Director of Onex. “We are grateful for his stewardship over the last 25 years and look forward to his continued involvement on the board. Looking forward, we are thrilled to be partnering with Bob Newman and the talented AEG team to create a larger, more diverse company to better serve ASM’s clients.”
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