AEG Facilities and SMG's 50-50 merger to create ASM Global, the world's largest sports and entertainment facilities management company, was a growth play rather than a move to generate cost savings, ASM Global President & CEO Bob Newman told THE DAILY. AEG and SMG execs also view the wrap up as complimentary because the deal brings together similar venues, markets and management talent, Newman added. As for potential growth opportunities, Newman said with the life cycle of sports stadiums and arenas trending to the shorter side -- venues looking to renovate or new projects being built can turn to ASM Global for services in almost any aspect of the facilities management business. ASM Global will now manage more than 300 facilities across five continents. In the U.S., SMG manages Minneapolis' U.S. Bank Stadium, Soldier Field in Chicago and New Orleans' Mercedes-Benz Superdome. Newman declined to disclose financial terms of the deal. In December '17, Canadian private equity firm Onex Corp. acquired SMG through Onex Partners IV Group, an affiliated fund that raised $5.7B in '14. In Q2 of '19, Onex reported spending $1.3B to fund acquisitions primarily related to the Onex Partners IV Group's investment in SMG and the acquisition of two other companies.
WHAT OTHERS ARE SAYING: Billboard's Marc Schneider notes ASM’s portfolio includes 310 venues, "notably the U.K.’s Manchester Arena," as well as "numerous convention centers and performing arts venues in North and South America, Asia, the Middle East and Europe." The merger "did not include properties and entertainment districts owned by AEG" in L.A., London, Hamburg and Berlin, or those under development.
