Ritchie Bros. Auctioneers Inc. and IronPlanet jointly announced that they have entered into an agreement under which Ritchie Bros. will acquire IronPlanet for approximately $758.5 million, subject to customary closing adjustments.
“This transformative transaction is the logical next step for Ritchie Bros., building on our multi‐channel platform, global reach and long‐standing customer relationships. Together with IronPlanet, we will create a combined company of trusted brands with the ability to provide customers around the world with a greater number of choices and platforms to sell, buy and list equipment when, where and how they want – whether onsite or online. Our commitment to diversifying our offerings is directly in line with customer demand for multiple selling and buying solutions,” said Ravi Saligram, CEO of Ritchie Bros. “This acquisition will help accelerate our growth in revenue and earnings and add shareholder value by continuing to expand our capabilities in new channels, sectors, regions and customer segments. Ritchie Bros. and IronPlanet both have talented teams and winning cultures built on a passion for serving customers.”
“This is an exciting day for IronPlanet, our customers, employees and shareholders. IronPlanet joining forces with Ritchie Bros. will allow the combined company to deliver a multi‐channel marketplace that will provide a full range of equipment asset management and disposition solutions. IronPlanet has built a leading online marketplace and technology platform across a number of verticals, and when combined with Ritchie Bros.’ strength in live onsite auctions, will prove to be a powerful combination in driving value for our customers,” said Gregory J. Owens, chairman and CEO of IronPlanet.
According to the companies, the transaction will bring together Ritchie Bros.’ “strength in live, onsite and integrated online auctions with IronPlanet’s position as an online marketplace,” with solutions including:
- Ritchie Bros. auctioneers live onsite and online simulcast auctions
- IronPlanet online‐only auctions, including a Reserved Daily Marketplace & Buy‐Now formats
- Cat Auction Services live onsite and online simulcast auctions (auctions anchored by Caterpillar dealers)
- Kruse Energy & Equipment AuctioneersSM live onsite and online simulcast auctions (for the oil & gas industry)
- EquipmentOne online auction and marketplace
- Mascus sales listing service
- TruckPlanet, GovPlanet, SalvageSale and other sector‐specific online sales channels
- Ritchie Bros. Private Treaty
- Ritchie Bros. Financial Services
Ritchie Bros. also announced that it has entered into a long‐term strategic alliance with Caterpillar, making it Caterpillar’s preferred global partner for live onsite and online auctions under the agreement, which will take effect upon completion of the IronPlanet acquisition.
“Ritchie Bros. is proud to enter into this historic alliance, which will strengthen our relationship with Caterpillar, its dealers and end users, as well as help expand our global reach and footprint,” said Saligram. “Our marketing capabilities, unrivaled suite of technology and powerful multi‐channel transactional platforms will add tremendous value and make us a trusted strategic partner to the Caterpillar family.”
“A key element of our digital strategy is connecting more products in our customers’ fleets, allowing us to help improve their productivity, increase safety and drive sustainability. This alliance will ensure that more used equipment buyers have access to our best‐in‐class products, digital offerings and world class customer support through the Cat dealer network,” said Rob Charter, group president with responsibility for Caterpillar’s Customer and Dealer Support. “Ritchie Bros. and Caterpillar are beginning an exciting new chapter in our relationship to better serve our global customers.”
The alliance between Ritchie Bros. and Caterpillar will have an initial five‐year term. After completing the acquisition of IronPlanet, Ritchie Bros. will operate live onsite auctions at participating Caterpillar dealers’ locations under the Cat Auction Services brand and also encompass Ritchie Bros.’ other onsite and online brands.