Legends seeks $1.85bn to acquire ASM Global

Legends Hospitality is reportedly pursuing a US$1.85 billion financing package to fund the potential acquisition of ASM Global, according to a new report in Bloomberg.

The New York-headquartered firm, which is backed by global investment firm Sixth Street Partners, specialises in delivering planning, sales, partnerships, hospitality, merchandise and technology solutions for sports and entertainment.

According to the report, Legends is in discussions with a group of private credit firms led by Ares Management Corp. and KKR & Co. to finance an acquisition of the US-headquartered venue management giant.

A merger with ASM would add facility operations to Legends’ offering, effectively completing a 360-degree business model. It would also see Legends become the world’s biggest third-party facility manager.

The financing package – which would include a number of different flexible loan types ranging in value from $100m to $1.55bn – would help pay for the takeover and refinance existing debt at Legends and ASM.

The deal would see Legends become the world’s biggest third-party facility manager

Alongside Ares Management Corp, the lender group also includes Apollo Global Management Inc. and Oaktree Capital Management.

Rumours of a merger came in July after a Mergermarket story claimed private equity firm Onex Corp, which owns 50% of ASM, had asked Goldman Sachs to oversee a formal sales process for the company.

Two months prior, Mergermarket said Onex and Goldman Sachs, serving in an advisory role, invited a limited number of prospective buyers to express interest in ASM. The group would be pitched to suitors with a projected EBITDA in the region of $250m.

ASM Global runs around 350 arenas, stadiums and convention centres worldwide, including a dozen NFL and NBA venues. AEG Facilities owns the remaining 50% of ASM Global after it merged with the old SMG to form a standalone company in 2019.

Legends counts the New York Yankees, the Dallas Cowboys and the Los Angeles Rams among its US clients. In Europe, it works with teams including Real Madrid, FC Barcelona, Liverpool FC, and Manchester City FC.

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