Vancouver- Aug 29, 2016 was a big day in the the auction business. On this day, two equipment auction powerhouses, Ritchie Bros. and IronPlanet, entered into an agreement that will see them combine, “To provide their customers with more ways to buy and sell equipment, trucks, and more,” according to the press release.
“This transformative transaction is the logical next step for Ritchie Bros., building on our multi‐channel platform, global reach and long‐standing customer relationships,” said Ravi Saligram, CEO of Vancouver-based. Ritchie Bros. “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. Ritchie Bros. and IronPlanet both have talented teams and winning cultures built on a passion for serving customers," added Ravi.
Founded in 1999, Pleasanton, California-based IronPlanet complements Ritchie Bros.' primarily end‐user customer base, as it focuses largely on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions. It conducts its sales primarily through online‐only platforms, with weekly online auctions and in other equipment marketplaces.
“This is an exciting day for IronPlanet, our customers, employees and shareholders,” said Gregory J. Owens, chairman and CEO of IronPlanet. “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.”
Greg continued, “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.”
The formal merging of the two companies is expected sometime in the first half of 2017. Ritchie Bros. acquisition of IronPlanet is subject to regulatory clearances and other customary closing conditions. Until the closing, both companies will continue to be in competition.
Caterpillar alliance
Also on Aug. 29, Caterpillar and Ritchie Bros. entered into a strategic alliance expected to deliver significant benefits to both companies.
Under the terms of the agreement, Ritchie Bros. will become Caterpillar's preferred global partner for live onsite and online auctions with respect to used Caterpillar equipment, and will complement Caterpillar's existing dealer channels. Ritchie Bros. will provide Caterpillar and its dealers with access to proprietary auction platforms, software and other value-added services, thereby enhancing the exchange of information and services between customers, dealers and suppliers. The strategic alliance is also expected to strengthen Ritchie Bros.' relationship with Caterpillar's independent dealers around the world by providing them enhanced and continued access to a global auction marketplace to sell their used equipment.
Caterpillar and its dealers own a minority position IronPlanet. The combined company, with its trusted brands, will deliver a multi-channel marketplace that will provide a full range of equipment asset management and disposition solutions. The new strategic alliance between Ritchie Bros. and Caterpillar replaces and expands on existing agreements in place between Caterpillar, its dealers and IronPlanet. The new strategic alliance will become effective when Ritchie Bros. completes its acquisition of IronPlanet.
The strategic 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.
