Ritchie Bros acquires IronPlanet for $758.5m

Ritchie Bros acquires IronPlanet for $758.5m

Industrial auctioneer Ritchie Bros. (NYSE:RBA) has acquired online equipment auctioneer IronPlanet for US$758.5 million in cash.

Ritchie Bros. has 110 locations worldwide and a market cap of $3.14 billion, while US-based IronPlanet sold approximately $787 million of gross merchandise value through its sales channels in 2015 and reached a 25.2% compounded growth rate in assets sold from 2013-2015.

Ritchie Bros plans to finance the transaction through a combination of cash and new debt.

The two companies are expected to generate online sales of $3 billion in assets during the 12 months after June 2016.

The deal will put both companies into the top 50 rankings of B2B ecommerce companies in the world.

Once the transaction is finished, Gregory J. Owens, chairman and CEO of IronPlanet will join the executive team at Ritchie Bros.

In addition to the purchase, Ritchie Bros. announced it would become Caterpillar’s preferred global partner for live onsite and online auctions, which will take effect after the IronPlanet acquisition.