Industrial auctioneer and construction machinery distributor Ritchie Bros. has agreed a $760mn takeover of IronPlanet, an online marketplace for used heavy equipment.
Ritchie Bros. said the acquisition complements its 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.
IronPlanet conducts its sales primarily through online-only platforms, with weekly online auctions and in other equipment marketplaces.
The company sold approximately $787mn worth of merchandise in 2015 and has achieved a 25.2% compounded growth rate in assets sold from 2013 through 2015.
This growth momentum has continued, with a 41% increase in merchandise sales during the first half of 2016 compared to the same period in 2015.
“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, Chief Executive Officer of 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.
“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. Ritchie Bros. and IronPlanet both have talented teams and winning cultures built on a passion for serving customers.”