Arena Events completes acquisition of Aztec Shaffer

(Sharecast News) - Arena Events Group announced on Monday that along with its co-bidders, it has completed the acquisition of Aztec Shaffer, and now holds a 50% equity stake with management control.
The AIM-traded firm said Aztec Shaffer comprises two businesses, being Aztec Events & Tents and Shaffer Sports & Events.

It said Aztec was a "very similar business" to Arena Stuart, its United States operations, based in California.

Aztec had a "diversified" customer and event base, with its products including party and wedding tents, as well as tables, chairs, linens, table top items, dance floors and decorative items.

The "significant majority" of Shaffer's historical revenues had come from golf, supporting more than 15 tournaments each year, including the Players Championship and the Presidents Cup.

Other sports served by Shaffer included motorsports and horse racing, with that focus on sports described as "well-aligned" with Arena Events Services, which had a broader customer mix and served a number events outside of sporting.

Aztec Shaffer had suffered a significant reduction in revenues over the last 15 months, compounded further by its section 363 bankruptcy.

As a result of the bankruptcy, the multi-year long term contract with the US Tour had been replaced by a short-term amended contract up to the end of December.

All other significant contracts were retained, and the company would begin discussions with the US Tour with a view to securing a new multi-year contract in the coming months.

"Aztec Shaffer has an excellent 40-year heritage in a key US territory, with state-of-the-art equipment following significant investment in recent years," said chief executive officer Greg Lawless.

"We will immediately start to work with their senior management to rebuild the business back to pre-Covid levels.

"These efforts will be helped by the gradual reopening of the events market over the next few months."

Lawless said the acquisition would broaden the group's North America tenting presence, operating from a brand new, purpose-built facility in Houston, Texas, extending its US event furniture rental business operating from a warehouse and showroom facility in downtown Houston - the country's fourth largest city.

"We are confident that the business fits exceptionally well with the Arena ethos of delivering premium quality solutions for our customers.

"We are, therefore, delighted to welcome the Aztec Shaffer team to the Arena Group and to help us deliver the Arena standard across an even larger part of the US market."

At 1139 BST, shares in Arena Events Group were up 0.91% at 15.01p.