Oak View Group Merging With Spectra to Get Into Food & Beverage Business

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Oak View Group and Spectra announced plans to merge, bringing together the fast-growing arena company with one of the largest concessions companies in live entertainment.

"We need to be in the food and beverage business and Spectra has done a great job with their accounts," says OVG CEO Tim Leiweke.

"We need to be in the food and beverage business and Spectra has done a great job with their accounts, the majority of which are food and beverage, and that is the No. 1 overriding opportunity here," OVG CEO."We now have the ability to compete against the big dogs, like ASM that has 300-plus accounts on a facility management side and is able to bundle food and beverage."

A handful of concessions companies dominate the facility business -- Aramark, Centerplate, Delaware North and the AEG-aligned Levy Restaurants -- with only one new entrant in the business, Legends Hospitality, in the last decade. Concessions are a difficult business, often operating at low margins and large scale, with discerning customers wanting much more than hot dogs and popcorn.

The merger of the two firms will add to the momentum of Oak View Group, which now works with over 40 facilities and is building and developing a number of top-tier venues including the Climate Pledge Arena in Seattle, UBS Arena in New York and the Moody Center arena in Austin.

 

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