Today’s story is about an auction site that you’ve probably heard of and if you haven’t heard of it, it’s possible that you live under a rock.
Ritchie Bros. will acquire Iron Planet for US$758.5 million cash.
RB began in Kelowna in 1958, has 110 locations worldwide and a market cap of $3.14 billion.
Gregory J. Owens, Chairman and CEO of IronPlanet, will join Ritchie Bros.’s executive team once the transaction is completed.
Iron Planet, a private company based in the United States that was founded in 1999, sold approximately US$787 million of gross merchandise value through its sales channels during 2015 and acheived a 25.2% compounded growth rate in assets sold from 2013 through 2015.
The deal represents a 13.0x multiple of IronPlanet’s 2017 estimated adjusted EBITDA, inclusive of the expected $100 million NPV of tax synergies and $20 million in run-rate cost synergies.
Ritchie Bros. also announced that it would become caterpillar‘s preferred global partner for live onsite and online auctions under the agreement, which will take effect upon completion of the IronPlanet acquistion.
Congratulations to both IronPlant and Ritchie Bros. on this agreement!
*All information for this story was taken from mining.com.