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New ownership for SMG

Investment group Ares Capital has purchased the venue manager's parent company, American Capital, for a cash and stock transaction of over $3bn

By IQ on 02 Jun 2016

Keane, Manchester Arena, 2012, Rob Sinclair, SMG Europe, Ares Capital

A Keane concert at SMG Europe's 21,000-capacity Manchester Arena in the UK in 2012

image © Rob Sinclair

American Capital, since 2007 the parent company of venue management giant SMG, has been sold to private-equity firm Ares Capital for US$3.43 billion, or $14.95 per share.

The combined company has investments worth over $13bn, according to a press release from Ares.

American Capital shareholders will receive $1.47bn in cash from Ares Capital, or $6.41 per share, plus 0.483 Ares Capital shares for each American Capital share. Ares shareholders will own nearly 74% of the combined entity after the sale is completed.

Ares says that “the significant size and scale of the combined company will create many strategic and financial benefits and will position the combined company to capitalise on favourable market conditions.”

SMG is the world’s largest manager of venues and conferences centres, and has subsidiaries in Europe, Canada and Latin America.

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