PMV Middle East
STRATEGIC RATIONALE FOR THE ACQUISITION
Ritchie Bros. (NYSE and TSX: RBA), established in 1958, offers customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. Operating in a number of sectors, including construction, transportation, agriculture, energy, oil and gas, mining, and forestry, the company’s selling channels include: Ritchie Bros. Auctioneers, the world’s largest industrial auctioneer offers live auction events with online bidding; Ironplanet, an online marketplace with featured weekly auctions and providing the exclusive Ironclad Assurance equipment condition certification; Marketplace-e, a controlled marketplace offering multiple price and timing options; Mascus, a leading European online equipment listing service; and Ritchie Bros. Private Treaty, offering privately negotiated sales.
The company’s suite of solutions also includes Ritchie Bros. Asset Solutions and Rouse Services LLC, which together provides a complete end-to-end asset management, data-driven intelligence and performance benchmarking system. Ritchie Bros. also offers sector-specific solutions including Govplanet, Truckplanet, and Kruse Energy, plus equipment financing and leasing through Ritchie Bros. Financial Services.
Euro Auctions, founded in 1998, conducts unreserved heavy equipment auctions with onsite and online bidding under the brands Euro Auctions and Yoder & Frey, with 200+ employees in 14 countries.
In 2020, the company conducted 60 auctions, selling close to 90,000 items for £484+ million across its nine locations in the United Kingdom, Ireland, Germany, Spain, the United Arab Emirates, Australia, and the United States. Similar to Ritchie Bros., Euro Auctions also sells items through a timed auction format and a daily marketplace with ‘Buy Now’ and ‘Make Offer’ options.
The acquisition of Euro Auctions will further establish Ritchie Bros. as the trusted global marketplace for insights, service, and transaction solutions for commercial assets, while achieving the following strategic goals.
• Accelerate Ritchie Bros.’ growth internationally and create a true global marketplace: Euro Auctions is a complementary brand to expand Ritchie Bros.’ global footprint and access to equipment while also tapping into new revenue streams, as Euro Auctions has considerable presence across Europe and the Middle East.
This combination will also offer unprecedented and diversified choice to customers around the world, facilitating better price discovery and more equipment selection.
• Accelerate inventory management system adoption: Ritchie Bros. suite of tools and digital services will unlock value for Euro Auctions customers post acquisition, providing a more robust offering for customers.
Tools and services include a free business inventory management system from RB Asset Solutions, data analytics tools like Market Trends and RB Asset Valuator, financing from Ritchie Bros. Financial Services, as well as shipping, insurance, warranties, refurbishing, and inspection services.
• Expand the global platform for at-risk consignment: The combined entity will be able to leverage industry best practices and decades of expertise, while providing access to more capital to quickly offer robust at-risk consignment options for customers globally, regardless of transaction size.
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Ritchie Bros.; Norton Rose Fulbright LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as legal advisors; and KPMG LLP is serving as accounting, tax and IT advisor. Jefferies International Limited is serving as financial advisor to the vendors of Euro Auctions, and A&L Goodbody LLP as legal advisor.