Ritchie Bros pick up IronPlanet for around US$758.5 million

Canada-based Ritchie Bros Auctioneers announced it will buy IronPlanet, a private company based in the United States but operating globally, for around US$758.5 million. IronPlanet was set up in 1999 and focuses on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions. The company conducts its sales primarily through online-only platforms, with weekly online auctions and in other equipment marketplaces.
August 30, 2016 Read time: 3 mins
Sold! Ritchie Bros expands its offering with IronPlanet purchase

Canada-based 8031 Ritchie Bros Auctioneers announced it will buy 714 IronPlanet, a private company based in the United States but operating globally, for around US$758.5 million.

IronPlanet was set up in 1999 and focuses on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions. The company conducts its sales primarily through online-only platforms, with weekly online auctions and in other equipment marketplaces.

In 2015, IronPlanet had sales of around $787 million of gross merchandise value (GMV) through their sales channels during 2015, according to a joint statement.

The company had a 25.2% compounded growth rate in assets sold from 2013 through 2015. “This growth momentum has continued, with a 41% increase in GMV during the first half of 2016 relative to the same period in 2015,” the statement said.

“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,” said Ravi Saligram, chief executive of Ritchie Bros.
Gregory Owens, chairman and chief executive of IronPlanet, that the combined company will deliver a multi-channel marketplace that will provide a full range of equipment asset management and disposition solutions.

IronPlanet’s online-only auctions, includes a Reserved Daily Marketplace & Buy-Now formats. The company also provides Cat Auction Services live onsite and online simulcast auctions - auctions anchored by Caterpillar dealers. For the oil and gas industry, there is Kruse Energy & Equipment Auctioneers live onsite and online simulcast auctions.

Ritchie Bros also announced that it will become Caterpillar’s preferred global partner for live onsite and online auctions under the agreement, which will take effect upon completion of the IronPlanet acquisition.

The addition of IronPlanet “will allow it to more effectively meet customer preferences in many key international locations, including the U.K., Germany, Japan and China – where Ritchie Bros.’ established infrastructure will provide a platform to launch IronPlanet solutions”.

The joint statement said that collectively, Ritchie Bros and IronPlanet sold more than $3 billion of assets through online transactions during the 12 months to June 30.
Ritchie Bros said it had secured employment agreements with key executives, who will supplement the strength of Ritchie Bros.’ global management team. Owens has agreed to join the combined company’s executive committee upon closing.

The transaction has been approved by the boards of directors of both companies and is expected to close by the first half of 2017, subject to regulatory clearances and the satisfaction of other customary closing conditions. 

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