AEG is once again expanding its footprint with a merger in the facilities management business.
The owner of the Los Angeles Convention Center, Staples Center and other mega-venues said that its AEG Facilities division is merging with SMG, a facilities management services company, the firms announced Thursday. They said the combined entity will be called ASM Global and be jointly owned by AEG and SMG’s parent company, Canadian private equity firm Onex.
Onex and AEG’s subsidiary will each own 50% of ASM Global upon completion of the merger, which is expected this year. The terms of the transaction were not disclosed.
The companies offer services including the physical management of venues and more specialized programs in operations, guest services, ticketing, booking, sales and marketing.
AEG said Thursday that ASM will be headquartered in Los Angeles, with key operations based in West Conshohocken, Pa., a suburb of Philadelphia. ASM will operate more than 310 venues across five continents. Its portfolio of buildings includes stadiums, arenas, performing arts centers and convention centers.
The majority of ASM’s venues will come from SMG’s portfolio, which includes more than 240 buildings.
SMG’s clients include high-profile NFL stadiums such as Soldier Field in Chicago, the U.S. Bank Stadium in Minneapolis and the Mercedes-Benz Superdome in New Orleans. The company also manages the Moscone Center in San Francisco and the Long Beach Convention and Entertainment Center.
The merger is expected to give Philip Anschutz-owned AEG a stronger position to compete against Madison Square Garden Co., a longtime rival in the field of live sports and entertainment.
Bob Newman, the president of AEG Facilities, is to be president and chief executive of the newly created ASM.
“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 said in a statement.
Los Angeles-based AEG will retain ownership of its real estate holdings outside of this venture, including the L.A. Live complex in downtown L.A.