A major merger announced Thursday will create a giant, new global facility management and venue services company.
AEG Facilities, the venue management subsidiary of AEG, and SMG, an Onex (ONEX) portfolio company, have agreed to merge and form a new standalone company, ASM Global (“ASM”).
ASM Global will operate more than 310 venues around the world, including arenas, stadiums, convention centers and performing arts centers.
AEG will retain ownership of its real estate holdings outside of this venture, including its owned venues in Los Angeles, London Hamburg and Berlin. Onex is contributing its entire equity investment in SMG into the merger.
Management-wise, AEG Facilities President Bob Newman – who spent nearly two decades working at SMG – will lead ASM Global as its President and CEO. Wes Westley, SMG’s CEO and President, will serve on ASM Global’s Board of Directors.
Westley called the merger “a major step for our industry.”
The terms of the transaction were not disclosed, but Onex and AEG’s subsidiary will each own 50 percent of the company. The merger is subject to government approval.
The new company will be headquartered in Los Angeles, with key operations in the Philadelphia suburb of West Conshohocken, Pennsylvania.