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AEG Facilities and SMG join forces
New facility management and service company ASM Global
AEG Facilities, the venue management subsidiary of AEG, and SMG, an Onex portfolio company, have announced that they have signed a definitive agreement to merge. This combination will create a new, standalone global facility management and venue services company that will operate as ASM Global. Onex and AEG's subsidiary will each own 50% of the company following the completion of the transaction. The terms of the transaction were not disclosed. ASM will be headquartered in Los Angeles, CA, with key operations based in West Conshohocken, PA, a suburb of Philadelphia. Wes Westley, chief executive officer and president of SMG, said, "This merger is a major step for our industry. 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". Bob Newman, current president of AEG Facilities and formerly a regional vice president at SMG, said, "It is an honour and privilege to be a part of this exciting new company, which brings together the two organisations where I have worked for the bulk of my professional career. This transaction draws upon the depth of our combined talent and resources to create an organisation 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, Mr. Newman will be named president and CEO of ASM. Mr. Westley will join ASM's board of directors, where he will actively support the merger integration. AEG will retain ownership of its real estate holdings outside of this venture, including its entertainment districts and owned venues in Los Angeles, London, Hamburg and Berlin, as well as its extensive development, sports, music and sponsorship divisions. Onex is contributing its entire equity investment in SMG into the merger. The transaction is expected to be completed later this year subject to customary closing conditions and regulatory approvals.